President Harry Truman signs the National Security Act of 1947, reorganizing the military and overhauling the government’s foreign policy-making bureaucracy. The act gives birth to three major organizations: the Department of Defense (DOD), the Central Intelligence Agency (CIA) and the National Security Council (NSC). The DOD unifies the three branches of the military—the Army, Navy and Air Force—into a single department overseen by a secretary of defense. The act establishes a separate agency, the CIA, to oversee all overt and covert intelligence operations. The act forms the NSC to directly advise the President on all matters of defense and foreign policy. In addition, the act establishes the National Security Resources Board (NSRB) to advise the President “concerning the coordination of military, industrial, and civilian mobilization” in times of war. Should the nation come under attack, the NSRB will be in charge of allocating essential resources and overseeing “the strategic relocation of industries, services, government, and economic activities, the continuous operation of which is essential to the Nation’s security.” [US Congress. House. Senate., 7/26/1947; Trager, 11/1977]

The National Security Agency (NSA) is founded. It is the successor to the State Department’s “Black Chamber” and other military code-breaking and eavesdropping operations dating back to the earliest days of telegraph and telephone communications. It will eventually become the largest of all US intelligence agencies, with over 30,000 employees at its Fort Meade, Maryland, headquarters. It focuses on electronic surveillance, operating a large network of satellites and listening devices around the globe. More even than the CIA, the NSA is the most secretive of US intelligence organizations, [New York Times, 12/16/2005] The agency will remain little known by the general public until the release of the 1998 film Enemy of the State, which will portray the NSA as an evil “Big Brother” agency spying on Americans as a matter of course. [CNN, 3/31/2001] After it is disclosed during the 1970s that the NSA spied on political dissenters and civil rights protesters, the NSA will be restricted to operating strictly overseas, and will be prohibited from monitoring US citizens within US borders without special court orders. [New York Times, 12/16/2005]

CIA coup planner Kermit Roosevelt. [Source: Find a Grave (,com)]The government of Iran is overthrown by Iranian rebels and the CIA in a coup codenamed Operation Ajax. The coup was planned by CIA operative Kermit Roosevelt after receiving the blessings of the US and British governments. Muhammad Mosaddeq is deposed and the CIA promptly reinstates Shah Mohammad Reza Pahlavi on the throne. The Shah’s secret police, SAVAK, trained by the CIA and Israel’s Mossad, are widely perceived as being as brutal and terrifying as the Nazi Gestapo in World War II. British oil interests in Iran, partially nationalized under previous governments, are returned to British control. American oil interests are retained by 8 private oil companies, who are awarded 40% of the Iranian oil industry. US General Norman Schwarzkopf, Sr. (father of the general with the same name in the 1991 Gulf War) helps the Shah develop the fearsome SAVAK secret police. [ZNet, 12/12/2001; Global Policy Forum, 2/28/2002] Author Stephen Kinzer will say in 2003, "The result of that coup was that the Shah was placed back on his throne. He ruled for 25 years in an increasingly brutal and repressive fashion. His tyranny resulted in an explosion of revolution in 1979 the event that we call the Islamic revolution. That brought to power a group of fanatically anti-Western clerics who turned Iran into a center for anti-Americanism and, in particular, anti-American terrorism. The Islamic regime in Iran also inspired religious fanatics in many other countries, including those who went on to form the Taliban in Afghanistan and give refuge to terrorists who went on to attack the United States. The anger against the United States that flooded out of Iran following the 1979 revolution has its roots in the American role in crushing Iranian democracy in 1953. Therefore, I think it’s not an exaggeration to say that you can draw a line from the American sponsorship of the 1953 coup in Iran, through the Shah’s repressive regime, to the Islamic revolution of 1979 and the spread of militant religious fundamentalism that produced waves of anti-Western terrorism." [Stephen Kinzer, 7/29/2003]

In 1954, Egyptian President Gamal Abddul Nasser’s nationalist policies in Egypt come to be viewed as completely unacceptable by Britain and the US. MI6 and the CIA jointly hatch plans for his assassination. According to Miles Copeland, a CIA operative based in Egypt, the opposition to Nasser is driven by the commercial community—the oil companies and the banks. At the same time, the Muslim Brotherhood’s resentment of Nasser’s secular government also comes to a head. In one incident, Islamist militants attack pro-Nasser students at Cairo University. Following an attempt on his own life by the Brotherhood, Nasser responds immediately by outlawing the group, which he denounces as a tool of Britain. The following years see a long and complex struggle pitting Nasser against the Muslim Brotherhood, the US, and Britain. The CIA funnels support to the Muslim Brotherhood because of “the Brotherhood’s commendable capability to overthrow Nasser.” [Baer, 2003, pp. 99; Dreyfuss, 2005, pp. 101-108] The Islamist regime in Saudi Arabia becomes an ally of the United States in the conflict with Nasser. They offer financial backing and sanctuary to Muslim Brotherhood militants during Nasser’s crackdown. Nasser dies of natural causes in 1970. [Dreyfuss, 2005, pp. 90-91, 126-131, 150]

The CIA organizes a general strike in Guyana, through its client trade unions. The CIA channels fund through the international public workers secretariat Public Services International, and via the International Confederation of Free Trade Unions for a strike lasting 80 days. Historian William Blum later notes that its support “was considerably less than total.” The strike is organized by the local Trades Union Council, headed by US-trained Richard Ishmael, who had received tutelage at the American Institute for Free Labor Development, along with other Guyanese officials. The strike is marked by violence and provocation, including attacks on Premier Cheddi Jagan and his family. A British police report later tags Ishmael as involved in “a terrorist group which…carried out bombings and arson attacks against government buildings during the strike.” [United Kingdom House of Commons, 4/5/1966, pp. 1765-67]

The CIA’s KUBARK interrogation manual is straightforward about the unreliability of torture as a means to acquire useful intelligence. (KUBARK is a CIA cryptogram for the agency itself.) The “KUBARK Counterintelligence Interrogation” manual states: “Intense pain is quite likely to produce false confessions, concocted as a means of escaping from distress. A time-consuming delay results, while investigation is conducted and the admissions are proven untrue. During this respite the interrogatee can pull himself together. He may even use the time to think up new, more complex’ admissions’ that take still longer to disprove.” The KUBARK manual is the product of over 10 years of research and testing, based on the experiences of US soldiers captured and tortured by Chinese interrogators. Waterboarding, called a method of “touchless torture,” elicited false confessions from the captured soldiers that the US planned to use biological weapons against North Korea. [Washington Post, 10/5/2006; Vanity Fair, 12/16/2008]

Svetlana Stalin, daughter of deceased Soviet leader Josef Stalin, defects to the West. The defection is arranged by the CIA’s station chief in India, David Blee, after Svetlana asks for asylum at the US embassy in Delhi. While officials in Washington are undecided about what to do about her request, Blee puts her on a plane and spirits her out of India to the West. The New York Times will later call this episode “one of Mr. Blee’s biggest early triumphs.” [New York Times, 8/17/2000; Los Angeles Times, 8/18/2000; Guardian, 8/22/2000]

US intelligence agencies, including the NSA, the CIA, and the FBI, run a clandestine and highly illegal surveillance operation called Project MINARET that uses “watch lists” to electronically and physically spy on “subversive” activities by civil rights and antiwar leaders such as Dr. Martin Luther King, Jr, Jane Fonda, Malcolm X, Dr. Benjamin Spock, and Joan Baez—all members of Richard Nixon’s infamous “enemies list.” [Patrick S. Poole, 8/15/2000; Pensito Review, 5/13/2006] MINARET operates in tandem with a much more extensive electronic surveillance operation, SHAMROCK, run by the NSA (see 1945-1975). Almost 6,000 foreigners and nearly 1,700 organizations and US citizens are monitored as part of MINARET. In August 1975, NSA director Lew Allen testifies before the Senate’s investigative commission on US intelligence activities, the Church Committee (see April, 1976), that the NSA has issued over 3,900 reports on the US citizens on MINARET’s watch lists, and the NSA’s Office of Security Services has maintained reports on at least 75,000 citizens between 1952 and 1975, reports that later became part of MINARET’s operations. MINARET, like SHAMROCK, will be terminated shortly after the Church Committee goes public with its information about the illegal surveillance program. [Bamford, 1983; Pensito Review, 5/13/2006]

David Blee, previously head of the CIA’s station in India, is appointed chief of its Near East division. One of his major responsibilities is tracking the emergence of Palestinian guerrilla groups, in the hope of anticipating their actions against Western targets. [New York Times, 8/17/2000; Guardian, 8/22/2000]

Former New York Police Department detective Jack Caulfield begins his new job as a White House aide. Caulfield was added to the White House by Nixon aide John Ehrlichman after President Nixon’s decision to use private, secretly held funds for political intelligence operations (see January 30, 1969). Caulfield is to conduct various political intelligence operations without being noticed by the CIA, the FBI, or the Republican National Committee. Originally, the idea was to pay Caulfield out of unspent campaign funds from the 1968 elections (see November 5, 1968), but Caufield insisted on being given a White House position. [Reeves, 2001, pp. 67]

The Army drops all charges against six Green Berets accused of murdering a South Vietnamese interpreter, Thai Khac Chuyen, accused of being a North Vietnamese collaborator. The Green Berets did indeed murder Chuyen and drop his body in the South China Sea. The CIA, irate at the murder, alerted senior military officials and the Army begins courts-martial proceedings against the six. However, the White House convinces CIA Director Richard Helms not to let any of his agents testify at the trials; without their testimony, the Secretary of the Army, Stanley Resor, decides that the trials cannot continue. White House press secretary Ron Ziegler solemnly informs reporters that “[t]he president had not involved himself either in the original decision to prosecute the men or in the decision to drop the charges against them.” The news horrifies RAND Corporation defense analyst Daniel Ellsberg. He is convinced that President Nixon and his aides were indeed involved in the decision to stop the CIA from testifying in the case. Ellsberg has long known of a secret document detailing the origins of the Vietnam War; one of only fifteen copies of that document resides in a RAND safe. Ellsberg calls his friend Anthony Russo and secures the use of a Xerox copying machine. The two begin secretly making their own copies of the document. When Ellsberg later leaks the document to the press, it becomes known as the “Pentagon Papers” (see March 1971). [Reeves, 2001, pp. 127-132]

Richard Perle, a young neoconservative just hired for the staff of Senator Henry “Scoop” Jackson (D-WA—see Early 1970s), is given a classified CIA report on alleged past Soviet treaty violations by CIA analyst David Sullivan. Apparently Sullivan leaks the report to pressure the US government to take a harder stance on the Soviet Union. Sullivan quits before an incensed CIA Director Stansfield Turner can fire him. Turner urges Jackson to fire Perle, but Jackson not only refuses, he also hires Sullivan for his staff. Sullivan and Perle establish an informal right-wing network called “the Madison Group” after their usual meeting place, the Madison Hotel Coffee Shop. [CounterPunch, 2/28/2004]

Edward Petty, an officer in the CIA’s counterintelligence section, produces a report saying that his boss, the controversial James Angleton, is probably a Soviet mole. The report cites 25 examples of suspicious behavior by Angleton, arguing that his disastrous impact on the CIA’s Soviet division demonstrates that he is under Kremlin control. Petty shows the report to several CIA managers, including Near East chief David Blee, and a full investigation is ordered. Angleton is cleared, but the investigation draws attention to his strange conduct and he will soon be replaced. [Guardian, 8/22/2000]

President Nixon meets with FBI Director J. Edgar Hoover, CIA Director Richard Helms, and the heads of the NSA and DIA to discuss a proposed new domestic intelligence system. His presentation is prepared by young White House aide Tom Charles Huston (derisively called “Secret Agent X-5” behind his back by some White House officials). The plan is based on the assumption that, as Nixon says, “hundreds, perhaps thousands, of Americans—mostly under 30—are determined to destroy our society.” Nixon complains that the various US intelligence agencies spend as much time battling with one another over turf and influence as they do working to locate threats to national security both inside and outside of the country. The agencies need to prove the assumed connections between the antiwar demonstrators and Communists. The group in Nixon’s office will now be called the “Interagency Committee on Intelligence,” Nixon orders, with Hoover chairing the new ad hoc group, and demands an immediate “threat assessment” about domestic enemies to his administration. Huston will be the White House liaison. Historian Richard Reeves will later write: “The elevation of Huston, a fourth-level White House aide, into the company of Hoover and Helms was a calculated insult. Nixon was convinced that both the FBI and the CIA had failed to find the links he was sure bound domestic troubles and foreign communism. But bringing them to the White House was also part of a larger Nixon plan. He was determined to exert presidential control over the parts of the government he cared most about—the agencies dealing with foreign policy, military matters, intelligence, law, criminal justice, and general order.” [Reeves, 2001, pp. 229-230]

President Nixon approves the “Huston Plan” for greatly expanding domestic intelligence-gathering by the FBI, CIA and other agencies. Four days later he rescinds his approval. [Washington Post, 2008] Nixon aide Tom Charles Huston comes up with the plan, which involves authorizing the CIA, FBI, NSA, and military intelligence agencies to escalate their electronic surveillance of “domestic security threats” in the face of supposed threats from Communist-led youth agitators and antiwar groups (see June 5, 1970). The plan would also authorize the surreptitious reading of private mail, lift restrictions against surreptitious entries or break-ins to gather information, plant informants on college campuses, and create a new, White House-based “Interagency Group on Domestic Intelligence and Internal Security.” Huston’s Top Secret memo warns that parts of the plan are “clearly illegal.” Nixon approves the plan, but rejects one element—that he personally authorize any break-ins. Nixon orders that all information and operations to be undertaken under the new plan be channeled through his chief of staff, H. R. Haldeman, with Nixon deliberately being left out of the loop. The first operations to be undertaken are using the Internal Revenue Service to harass left-wing think tanks and charitable organizations such as the Brookings Institution and the Ford Foundation. Huston writes that “[m]aking sensitive political inquiries at the IRS is about as safe a procedure as trusting a whore,” since the administration has no “reliable political friends at IRS.” He adds, “We won’t be in control of the government and in a position of effective leverage until such time as we have complete and total control of the top three slots of the IRS.” Huston suggests breaking into the Brookings Institute to find “the classified material which they have stashed over there,” adding: “There are a number of ways we could handle this. There are risks in all of them, of course; but there are also risks in allowing a government-in-exile to grow increasingly arrogant and powerful as each day goes by.” [Reeves, 2001, pp. 235-236] In 2007, author James Reston Jr. will call the Huston plan “arguably the most anti-democratic document in American history… a blueprint to undermine the fundamental right of dissent and free speech in America.” [Reston, 2007, pp. 102]

After President Nixon approves of the so-called “Huston Plan” to implement a sweeping new domestic intelligence and internal security apparatus (see July 14, 1970), FBI director J. Edgar Hoover brings the plan’s author, White House aide Tom Charles Huston (see June 5, 1970), into his office and vents his disapproval. The “old ways” of unfettered wiretaps, political infiltration, and calculated break-ins and burglaries are “too dangerous,” he tells Huston. When, not if, the operations are revealed to the public, they will open up scrutiny of US law enforcement and intelligence agencies, and possibly reveal other, past illegal domestic surveillance operations that would embarrass the government. Hoover says he will not share FBI intelligence with other agencies, and will not authorize any illegal activities without President Nixon’s personal, written approval. The next day, Nixon orders all copies of the decision memo collected, and withdraws his support for the plan. [Reeves, 2001, pp. 236-237] W. Mark Felt, the deputy director of the FBI, later calls Huston “a kind of White House gauleiter over the intelligence community.” Washington Post reporter Bob Woodward will note that the definition of “gauleiter” is, according to Webster’s Dictionary, “the leader or chief officoal of a political district under Nazi control.” [Woodward, 2005, pp. 33-34]

After Egyptian President Gamal Abddul Nasser dies in October 1970, he is succeded as president of Egypt by his former Vice President, Anwar Sadat. Sadat is also a former member of the Muslim Brotherhood, and he promptly reinstates the group as a legal organization and welcomes them back into Egypt. Sadat also has a very close relationship with the head of Saudi intelligence, Kamal Adham. Through Adham, Sadat also develops close working relationships not only with the Saudis, but with the CIA and Henry Kissinger. Sadat uses the power of the religious right, and the Muslim Brothers in particular to contain the Nasserites and their resistance to the radical changes he introduces. During Sadat’s tenure in the 1970’s Egypt becomes a hotbed of Islamic fundamentalism, and figures like Sheikh Omar Abdul-Rahman and Ayman al-Zawahiri gain great power in Egypt during this period. Ironically Sadat himself is assassinated in 1981 by Islamic Jihad, an offshoot of the Muslim Brotherhood, in 1981, because of his accomodation with Israel. [Dreyfuss, 2005, pp. 147-162, 165]

David Blee, a former Office of Strategic Services agent (see (1943-1944)) who joined the CIA in 1947 (see 1947), is appointed head of the agency’s Soviet Division. Thanks to his appointment, Blee replaces James Angleton as the biggest influence on Soviet policy. Angleton is an extremely controversial figure at the agency who has run counterintelligence for over two decades and views every Soviet defector as a plant. Therefore, the CIA has rebuffed many potential defectors and even imprisoned one defector under what the New York Times will call “brutal conditions.” Angleton’s theory of a “monster plot” by the Soviets against the US has also led to a witch hunt for Soviet moles at the agency, harming morale and effectiveness. For example, the agency was so blind that in 1968 it was unable to predict the Warsaw Pact’s invasion of Czechoslovakia. Blee rejects the “monster plot” theory and reverses Angleton’s policy. The CIA’s doors are thrown open to defectors and this greatly increases the number of spies the agency has in the Soviet bloc. This posting is the high point of Blee’s career and he will subsequently be regarded as one of the agency’s finest ever officers for it (see September 18, 1997). Former CIA officer Haviland Smith will comment, “He was the architect of the program that turned the clandestine service back on target against the Soviets after all the years of Angleton.” Former agency Deputy Director of Operations Clair George will add, “He had a greater intellectual command of overseas operational activity than any officer I ever knew.” [New York Times, 8/17/2000; Los Angeles Times, 8/18/2000; Guardian, 8/22/2000]

The New York Times publishes its third installment of the “Pentagon Papers” (see June 13, 1971 and June 14, 1971). A furious President Nixon demands an immediate court injunction to keep the paper from printing more excerpts. He orders: “I want to know who is behind this and I want the most complete investigation that can be conducted.… I don’t want excuses. I want results. I want it done, whatever the cost.” Secretary of State Henry Kissinger informs Nixon that he believes Daniel Ellsberg, who leaked the documents to the Times, is a “fanatic” and a “drug abuser.” Attorney General John Mitchell says that Ellsberg must be part of a communist “conspiracy” and suggests he be tried for treason. Nixon calls together a group of loyal White House aides to investigate Ellsberg’s leak of classified documents. The group will become known as the “plumbers” for their task to “plug the leaks” (see Late June-July 1971). Other undercover operators, including CIA agent E. Howard Hunt and G. Gordon Liddy, are recruited by White House special counsel Charles Colson. [Herda, 1994]

E. Howard Hunt. [Source: American Patriot Friends Network]Nixon White House aides Charles Colson and John Ehrlichman appoint former CIA agent E. Howard Hunt to the White House staff. Hunt will become a key figure in the “Plumbers” unit that will burglarize and plant surveillance devices in the headquarters of the Democratic National Committee (see April-June 1972). [Spartacus Schoolnet, 8/2007] Hunt is a longtime US intelligence veteran, having started with the CIA’s predecessor, the Office of Special Services (OSS) during World War II. He worked extensively in Central America during the 1950s, helping build the US’s relationship with Nicaraguan dictator Anastasio Somoza, working to topple the democratically elected government of Jacobo Arbenz of Guatamala, and coordinating US efforts against Cuba’s Fidel Castro. Hunt also writes spy novels. [Spartacus Schoolnet, 8/2007]

Eugenio Martinez. [Source: public domain]President Nixon’s “Plumbers” unit, tasked to plug media leaks from administration officials and outsiders to the media, burglarizes the Los Angeles office of psychiatrist Lewis Fielding to find damaging information on Daniel Ellsberg, the former defense analyst and patient of Fielding who leaked the “Pentagon Papers” to the media. [Gerald R. Ford Library and Museum, 7/3/2007] Ellsberg is a former Marine captain in Vietnam and protege of Henry Kissinger who had a change of heart over the war; he then leaked a secret set of Pentagon documents to the New York Times detailing how the Kennedy and Johnson administrations had secretly escalated the war in Vietnam (see June 13, 1971). Watergate Connection - One of the burglars is Eugenio Martinez, who later is arrested as one of the five Watergate burglars (see 2:30 a.m.June 17, 1972). Martinez and two others—Felipe de Diego and the mission leader, E. Howard Hunt, who will supervise the Watergate burglary—are all old “CIA hands” heavily involved in anti-Castro activities. Martinez is still active in the CIA, as is Hunt, whom he often refers to by his old CIA code name of “Eduardo.” Another Watergate burglar, CIA agent Bernard Barker, is also involved in the Ellsberg burglary. Martinez: Burglary a Near-Disaster - Hunt tells Martinez and Diego that they are to burglarize the offices of a “traitor” who is spying for the Soviet Union, and that the mission was ordered by the White House, where Hunt is now an aide. Barker tells the Cubans, “We have to find some papers of a great traitor to the United States, who is a son of a b_tch .” The men will become a unit outside the normal law enforcement and intelligence channels, operating within but not part of the CIA, FBI, and “all the agencies,” Martinez will later recall. They buy photographic equipment at Sears, and Hunt and Diego use disguises—wigs, fake glasses, false identification, and voice-altering devices. “Barker recognized the name on Hunt’s false identification—Edward J. Hamilton—as the same cover name Eduardo had used during the Bay of Pigs,” Martinez will recall. The planning, Martinez will recall, is far looser and less meticulous than “anything I was used to in the [CIA].” A disguised Hunt and Diego, masquerading as delivery men, deliver the photographic equipment to the office; later that night, they and Martinez break in and rifle the office. Martinez will write that Hunt and de Diego looked “kind of queerish” in their disguises, with their “Peter Lorre-type glasses, and the funny Dita Beard wigs” (see February 22, 1972). Before the break-in, Barker, who does not enter, whispers to Martinez, “Hey, remember this name—Ellsberg.” Martinez does not recognize the name. [Harper's, 10/1974; Reeves, 2001, pp. 369]Comedy of Errors - The burglars wait for hours until the cleaning lady leaves for the night, and find the door to the building locked. At that point, a fifth man, “George,” whom Martinez learns is G. Gordon Liddy, another of the Watergate burglars also involved in the Ellsberg planning, appears and tells them to break in through a window. [Harper's, 10/1974] Three burglars—Bernard Barker, Felipe de Diego, and Eugenio Martinez—perform the actual break-in, while Hunt and Liddy act as lookouts. [Reeves, 2001, pp. 369] The burglary is quickly turning into a comedy of errors, Martinez will recall. “This was nothing new. It’s what the Company did in the Bay of Pigs when they gave us old ships, old planes, old weapons. They explained that if you were caught in one of those operations with commercial weapons that you could buy anywhere, you could be said to be on your own. They teach you that they are going to disavow you. The Company teaches you to accept those things as the efficient way to work. And we were grateful. Otherwise we wouldn’t have had any help at all. In this operation it seemed obvious—they didn’t want it to be traced back to the White House. Eduardo told us that if we were caught, we should say we were addicts looking for drugs.” Martinez finds nothing concerning Ellsberg in the office except for Fielding’s telephone book, which Martinez photographs. Before leaving, Martinez spills some pills from Fielding’s briefcase—“vitamin C, I think”—over the floor to make it seem as if the burglars had broken in looking for drugs. As they leave the office, Martinez spots a police car trailing them, but they are not stopped. “I thought to myself that the police car was protecting us. That is the feeling you have when you are doing operations for the government. You think that every step has been taken to protect you.” Failure; Training for Bigger Mission? - Martinez feels that the burglary is a failure, but Hunt insists that they celebrate anyway. Martinez tells Diego that the break-in must either be a training exercise for a more important mission to come, or it was a cover operation for something else. “I thought to myself that maybe these people already had the papers of Ellsberg. Maybe Dr. Fielding had given them out and for ethical reasons he needed to be covered. It seemed that these people already had what we were looking for because no one invites you to have champagne and is happy when you fail,” he will write. Martinez’s CIA supervisor is strangely uninterested in the incident. “I was certain then that the Company knew about his activities,” Martinez will write. “But once again my CO did not pursue the subject.” [Harper's, 10/1974] Hunt telephones Plumbers supervisor Egil Krogh at 4 a.m. to report that the burglary was a success but they found no files on Ellsberg. [Reeves, 2001, pp. 369]

According to Watergate burglar Eugenio Martinez (see 2:30 a.m.June 17, 1972), White House aide E. Howard Hunt, whom he calls by his old CIA code name “Eduardo” (see September 9, 1971), is ratcheting up the activities of the White House “Plumbers” operation. Martinez is not yet aware of the nature of the team’s operations, but believes he is part of a black-ops, CIA-authorized organization working to foil Communist espionage activities. Hunt gives team member Bernard Barker $89,000 in checks from Mexican banks to cash for operational funds, and orders Barker to recruit new team members. Barker brings in Frank Sturgis, Virgilio Gonzalez, and Reinaldo Pico, all veterans of the CIA’s activities against Cuba’s Fidel Castro. On May 22, the six—Hunt, Barker, Gonzalez, Martinez, Pico, and Sturgis—meet for the first time at the Manger Hays-Adams Hotel in Washington for Hunt’s first briefing. By this point, Martinez will later recall, G. Gordon Liddy, who had been involved in the burglary related to Pentagon Papers leaker Daniel Ellsberg, is involved. Hunt calls Liddy “Daddy,” and, Martinez recalls, “the two men seemed almost inseparable.” They meet another team member, James McCord, who unbeknownst to Martinez is an official with Nixon’s presidential campaign (see June 19, 1972). McCord is introduced simply as “Jimmy,” an “old man from the CIA who used to do electronic jobs for the CIA and the FBI.” McCord is to be the electronics expert. Plans to Break into McGovern HQ - Martinez says that the group is joined by “a boy there who had infiltrated the McGovern headquarters,” the headquarters of the campaign of Democratic presidential candidate George McGovern. According to Hunt, they are going to find evidence proving that the Democrats are accepting money from Castro and other foreign governments. (Interestingly, Martinez will write that he still believes McGovern accepted Cuban money.) Hunt soon aborts the mission; Martinez believes “it was because the boy got scared.” New Plans: Target the DNC - Instead, he and Liddy begin planning to burglarize the headquarters of the Democratic National Committee (DNC) in the Watergate hotel and office complex. They all move into the Watergate to prepare for the break-in. Martinez will recall: “We brought briefcases and things like that to look elegant. We registered as members of the Ameritus Corporation of Miami, and then we met in Eduardo’s room.” The briefing is “improvised,” Martinez will recall. Hunt says that the Castro funds are coming to the DNC, not McGovern’s headquarters, and they will find the evidence there. The plans are rather impromptu and indefinite, but Martinez trusts Hunt and does not question his expertise. [Harper's, 10/1974]

Though the five Watergate burglars (see 2:30 a.m.June 17, 1972) are not yet allowed to make telephone calls, phones begin ringing at 5 a.m. at the CIA, the White House, the offices of the Nixon re-election campaign (CREEP), and Nixon’s home in Key Biscayne, where White House aide H. R. Haldeman is. By 3:30 p.m., when the five appear for arraignment (see June 17, 1972), lawyers are waiting to represent them. At CREEP, accused burglar G. Gordon Liddy, released on bail, is busily shredding files; fellow burglar E. Howard Hunt is doing the same at his office. White House aide Charles Colson orders all White House phone directories listing Hunt as a White House employee destroyed. CREEP deputy director Jeb Magruder speaks to his boss, CREEP director John Mitchell, by phone, then begins burning his copies of the “Gemstone” files (see January 29, 1972). Later in the day, Liddy bursts into Attorney General Richard Kleindienst’s office saying that Mitchell wants the five burglars—Bernard Barker, Virgilio Gonzales, Eugenio Martinez, James McCord, and Frank Sturgis—released from prison immediately (see June 17, 1972). Kleindienst does not believe Liddy, and has no authority to release them anyway. [Reeves, 2001, pp. 501]

Prosecutor Earl Silbert. [Source: Washington Post]The five men caught burglarizing the Democratic National Committee’s headquarters in the Watergate hotel (see 2:30 a.m.June 17, 1972) are arraigned in a Washington, DC, city court on charges of felony burglary and possession of implements of crime. All five originally gave the police false names. [Washington Post, 6/18/1972] The real identities of the five are: Bernard Barker of Miami, a Cuban-American whom Cuban exiles say has worked on and off for the CIA since the 1961 Bay of Pigs invasion. Barker was one of the principal leaders of the Cuban Revolutionary Council, the exile organization established with CIA help to organize the Bay of Pigs invasion. Barker’s wife reportedly told attorney Douglas Caddy, one of the team’s lawyers, that, as Caddy says, “her husband told her to call me if he hadn’t called her by 3 a.m.: that it might mean he was in trouble.” [Washington Post, 6/18/1972; Washington Post, 6/19/1972] Barker owns a Miami real estate firm, Barker & Associates. [O.T. Jacobson, 7/5/1974 ] Virgilio Gonzalez, a Miami locksmith of Cuban extraction. Gonzalez’s boss, Harry Collot, says Gonzalez came to the US about the time Fidel Castro became well-known, and is an ardent opponent of the Castro regime. Collot describes Gonzalez as “pro-American and anti-Castro… he doesn’t rant or rave like some of them do.” Eugenio Martinez, a real estate agent from Miami, who authorities say is active in anti-Castro activities in Florida, and violated US immigration laws in 1958 by flying a private plane to Cuba. James W. McCord, the security director for the Committee for the Re-election of the President (CREEP). McCord initially identifies himself as “Edward Martin,” a former CIA agent and “security consultant” who resides in New York City and possibly the DC area. Neither the police or the press are aware, at the moment, of McCord’s true identity (see June 19, 1972). Frank Sturgis, a former Cuban army intelligence officer, mercenary, and now the agent for a Havana salvage firm in Miami. Sturgis uses the alias “Frank Florini” during the arraignment. “Fiorini” was identified in 1959 by the Federal Aviation Agency as the pilot of a plane that dropped anti-Castro leaflets over Havana. Previous news reports describe “Fiorini” as a “soldier of fortune” and the former head of the International Anti-Communist Brigade, an organization formed after the disastrous Bay of Pigs invasion of 1962. The Brigade trained and ferried 23 Cuban exiles into Cuba, where they began guerrilla operations against Castro. “Florini” reportedly fought with, not against, Castro during the Cuban revolution and was originally slated to be named overseer of Cuba’s gambling operations before Castro shut down Cuba’s casinos. Apparently, Sturgis is involved in trying to orchestrate Miami Cubans to demonstrate against the Democratic National Convention, to be held in Miami in July. Sturgis is also involved in the John Birch Society and the Reverend Billy James Hargis’s Christian Crusade. During their arraignment, one of the burglars describes the team as “anti-Communists,” and the others nod in agreement. Prosecutor Earl Silbert calls the operation “professional” and “clandestine.” The court learns that four of the five, all using fictitious names, rented two rooms at the Watergate, and dined together in the Watergate restaurant on February 14. A search of the two rooms turns up $4,200, again in sequential $100 bills, more burglary tools, and more electronic surveillance equipment, all stashed in six suitcases. Currently, FBI and Secret Service agents are investigating the burglary. Caddy, who says he met Barker a year ago at the Army Navy Club and had a “sympathetic conversation [with Barker]—that’s all I’ll say,” attempts to stay in the background during the arraignment, instead having another attorney, Joseph Rafferty Jr, plead before the court. Caddy is a corporate lawyer with no criminal law experience. [Washington Post, 6/18/1972; Washington Post, 6/19/1972] Interestingly, Caddy shows up at the arraignment apparently without any of the burglars contacting him (see June 17, 1972). [Woodward, 2005, pp. 35] Silbert argues unsuccessfully that the five should be held without bail, citing their use of fictitious names, their lack of community ties, and the likelihood that they would flee the country after they post bail. “They were caught red-handed,” Silbert tells the court. [Washington Post, 6/18/1972; Washington Post, 6/19/1972]

While the police are arresting the five Watergate burglars (see 2:30 a.m.June 17, 1972), the team leader, E. Howard Hunt, goes to the hotel room in which Nixon campaign aide Alfred Baldwin has been monitoring the electronic surveillance devices surreptitiously installed in Democratic National Committee headquarters (see May 27-28, 1972). Baldwin was to monitor the burglars and warn them of trouble, but the burglar with the walkie-talkie, Bernard Barker, had his unit turned off and Baldwin was unable to warn them of police arriving on the scene. From Baldwin’s hotel room, Hunt phones a lawyer, Douglas Caddy; Hunt and Caddy both work at a public relations firm, Mullen Company, which some believe is a CIA front organization. Baldwin can hear Hunt talking about money, bail, and posting bonds. Hunt instructs Baldwin to load a van belonging to burglar James McCord with the listening post equipment and sensitive operational documents (the “Gemstone” file—see September 29, 1972), and drive to McCord’s house in Rockville, Maryland. Baldwin will soon tell his story to a lawyer, Robert Mirto; the information will soon find its way to DNC chairman Lawrence O’Brien. This is how O’Brien so quickly learns that White House aides such as Hunt and G. Gordon Liddy were involved in the Watergate burglary (see June 20, 1972). [Spartacus Schoolnet, 8/2007]FBI Finds Information Connecting Burglars to White House Aide - Within hours of the burglary, FBI agents searching the Watergate hotel rooms of the burglars find a check with the name “E. Howard Hunt” imprinted on it. [O.T. Jacobson, 7/5/1974 ] In October 1974, burglar Bernard Barker will write: “When we went on the mission, I had put all our identifications and wallets in a bag in the hotel room, and I told Howard that if something happened he would have everything, including my address book with the White House phone number. But when he left the room, he was in such a big hurry that he left everything there. This was a very bad mistake, of course, because [the FBI] immediately established the connection with Hunt and me. They had the connections on a silver platter. But I guess Hunt had enough things to worry about then.” [Harper's, 10/1974] The agents, quickly learning that Hunt is a White House employee, interview Hunt at his Potomac home; Hunt admits the check is his, but denies any knowledge of the burglary. [O.T. Jacobson, 7/5/1974 ]

Frank Wills, the security guard who discovers the taped doors and alerts the DC police. [Source: Bettmann / Corbis]Five burglars (see June 17, 1972) are arrested at 2:30 a.m. while breaking in to the Democratic National Committee (DNC) Headquarters offices in Washington’s Watergate hotel and office complex; the DNC occupies the entire sixth floor. [Washington Post, 6/18/1972; Gerald R. Ford Library and Museum, 7/3/2007]Discovery - They are surprised at gunpoint by three plainclothes officers of the DC Metropolitan Police. Two ceiling panels have been removed from the secretary’s office, which is adjacent to that of DNC chairman Lawrence O’Brien. It is possible to place a surveillance device above those panels that could monitor O’Brien’s office. The five suspects, all wearing surgical gloves, have among them two sophisticated voice-activated surveillance devices that can monitor conversations and telephone calls alike; lock-picks, door jimmies, and an assortment of burglary tools; and $2,300 in cash, most of it in $100 bills in sequence. They also have a walkie-talkie, a shortwave receiver tuned to the police band, 40 rolls of unexposed film, two 35mm cameras, and three pen-sized tear gas guns. Near to where the men are captured is a file cabinet with two open drawers; a DNC source speculates that the men might have been preparing to photograph the contents of the file drawers. Guard Noticed Taped Door - The arrests take place after a Watergate security guard, Frank Wills, notices a door connecting a stairwell with the hotel’s basement garage has been taped so it will not lock; the guard removes the tape, but when he checks ten minutes later and finds the lock taped once again, the guard calls the police. The police find that all of the stairwell doors leading from the basement to the sixth floor have been similarly taped to prevent them from locking. The door leading from the stairwell to the DNC offices had been jimmied. During a search of the offices, one of the burglars leaps from behind a desk and surrenders. [Washington Post, 6/18/1972] The FBI agents responding to the burglary are initially told that the burglars may have been attempting to plant a bomb in the offices. The “bomb” turns out to be surveillance equipment. [O.T. Jacobson, 7/5/1974 ]Last Mission for Martinez - One of the burglars, Cuban emigre and CIA agent Eugenio Martinez, will recall the burglary. They have already successfully burglarized a psychiatrist’s office in search of incriminating material on Pentagon Papers leaker Daniel Ellsberg (see September 9, 1971), and successfully bugged the DNC offices less than a month previously (see May 27-28, 1972), but Martinez is increasingly ill at ease over the poor planning and amateurish behavior of his colleagues (see Mid-June 1972). This will be his last operation, he has decided. Team leader E. Howard Hunt, whom Martinez calls by his old code name “Eduardo,” is obviously intrigued by the material secured from the previous burglary, and wants to go through the offices a second time to find more. Martinez is dismayed to find that Hunt has two operations planned for the evening, one for the DNC and one for the campaign offices of Democratic candidate George McGovern. Former CIA agent and current Nixon campaign security official James McCord (see June 19, 1972), the electronics expert of the team, is equally uncomfortable with the rushed, almost impromptu plan. Hunt takes all of the burglars’ identification and puts it in a briefcase. He gives another burglar, Frank Sturgis, his phony “Edward J. Hamilton” ID from his CIA days, and gives each burglar $200 in cash to bribe their way out of trouble. Interestingly, Hunt tells the burglars to keep the keys to their hotel rooms. Martinez later writes: “I don’t know why. Even today, I don’t know. Remember, I was told in advance not to ask about those things.” Taping the Doors - McCord goes into the Watergage office complex, signs in, and begins taping the doors to the stairwells from the eighth floor all the way to the garage. After waiting for everyone to leave the offices, the team prepares to enter. Gonzalez and Sturgis note that the tape to the basement garage has been removed. Martinez believes the operation will be aborted, but McCord disagrees; he convinces Hunt and the other team leader, White House aide G. Gordon Liddy, to continue. It is McCord’s responsibility to remove the tape once the burglars are inside, but he fails to do so. The team is well into the DNC offices when the police burst in. “There was no way out,” Martinez will recall. “We were caught.” Barker is able to surreptitiously advise Hunt, who is still in the hotel, that they have been discovered. Martinez will later wonder if the entire second burglary might have been “a set-up or something like that because it was so easy the first time. We all had that feeling.” The police quickly find the burglars’ hotel keys and then the briefcase containing their identification. As they are being arrested, McCord, who rarely speaks and then not above a whisper, takes charge of the situation. He orders everyone to keep their mouths shut. “Don’t give your names,” he warns. “Nothing. I know people. Don’t worry, someone will come and everything will be all right. This thing will be solved.” [Harper's, 10/1974; Spartacus Schoolnet, 8/7/2007]'Third-Rate Burglary' - White House press secretary Ron Ziegler will respond to allegations that the White House and the Nixon presidential campaign might have been involved in the Watergate burglary by calling it a “third-rate burglary attempt,” and warning that “certain elements may try to stretch this beyond what it is.” [Washington Post, 5/1/1973] The Washington Post chooses, for the moment, to cover it as a local burglary and nothing more; managing editor Howard Simons says that it could be nothing more than a crime committed by “crazy Cubans.” [Bernstein and Woodward, 1974, pp. 19]CIA Operation? - In the weeks and months to come, speculation will arise as to the role of the CIA in the burglary. The Nixon White House will attempt to pin the blame for the Watergate conspiracy on the CIA, an attempt forestalled by McCord (see March 19-23, 1973). In a 1974 book on his involvement in the conspiracy, McCord will write: “The Watergate operation was not a CIA operation. The Cubans may have been misled by others into believing that it was a CIA operation. I know for a fact that it was not.” Another author, Carl Oglesby, will claim otherwise, saying that the burglary is a CIA plot against Nixon. Former CIA officer Miles Copeland will claim that McCord led the burglars into a trap. Journalist Andrew St. George will claim that CIA Director Richard Helms knew of the break-in before it occurred, a viewpoint supported by Martha Mitchell, the wife of Nixon campaign director John Mitchell, who will tell St. George that McCord is a “double agent” whose deliberate blunders led to the arrest of the burglars. No solid evidence of CIA involvement in the Watergate conspiracy has so far been revealed. [Spartacus Schoolnet, 8/2007]

After an Oval Office discussion about having Watergate burglar G. Gordon Liddy take the entire blame for the Watergate bugging (see June 21, 1972), President Nixon and his aide Charles Colson have another idea—blame the operation on the CIA. “I think we could develop a theory as to the CIA if we wanted to,” Colson says. “We know that [burglar E. Howard] Hunt has all those ties with these people [referring to the other Watergate burglars]. He was their boss, and they were all CIA. You take the cash, you go down to Latin America.… We’re in great shape with the Cubans, and they’re proud of it. There’s a lot of muscle in that gang.” [Reeves, 2001, pp. 506]

Nixon and Haldeman, three days after the June 23 meeting. [Source: Washington Post]With the FBI tracing the Watergate burglars’ $100 bills to GOP fundraiser Kenneth Dahlberg (see August 1-2, 1972), President Nixon orders the CIA to attempt to stop the FBI from investigating the Watergate conspiracy, using the justification of “national security.” One of the areas Nixon specifically does not want investigated is the $89,000 in Mexican checks found in the account of one of the Watergate burglars, Bernard Barker (see April-June 1972). [Reeves, 2001, pp. 508-510; Woodward, 2005, pp. 59-60] Author James Reston Jr. will write in 2007: “The strategy for the CIA to block the FBI’s investigation of the Mexican checks… was devised by Haldeman and Nixon. This was a clear obstruction of justice.” [Reston, 2007, pp. 33-34] The plan, concocted by Nixon campaign chief John Mitchell, is to have deputy CIA director Vernon Walters tell the new FBI Director, L. Patrick Gray, to, in the words of Nixon chief of staff H. R. Haldeman, “stay the hell out of this… this is, ah, business we don’t want you to go any further on it.” Nixon approves the plan. White House aide John Ehrlichman will later testify that he is the one tasked with carrying out Nixon’s command; Nixon tells Ehrlichman and Haldeman to have the CIA “curb the FBI probe.” [O.T. Jacobson, 7/5/1974 ]Nixon: FBI, CIA Should Back out of Investigation - In his discussion with Nixon, Haldeman says that “the FBI is not under control, because Gray doesn’t exactly know how to control them, and they have, their investigation is now leading into some productive areas, because they’ve been able to trace the money… and it goes in some directions we don’t want it to go.” Haldeman also says that the FBI has a witness in Miami who saw film developed from one of the Watergate burglaries (see Mid-June 1972). He tells Nixon that the FBI is not aware yet that the money for the burglars can be traced to Dahlberg, who wrote a $25,000 check that went directly to one of the Watergate burglars. That check is “directly traceable” to the Mexican bank used by the Nixon re-election campaign (CREEP). Haldeman says that he and Ehrlichman should call in both Gray and CIA Director Richard Helms and tell both of them to have their agencies back out of any investigation. Nixon agrees, saying that considering Hunt’s involvement: “that will uncover a lot of things. You open that scab there’s a hell of a lot of things and that we just feel that it would be very detrimental to have this thing go any further. This involves these Cubans, Hunt, and a lot of hanky-panky that we have nothing to do with ourselves.” Haldeman says he believes that Mitchell knew about the burglary as well, but did not know the operational details. “[W]ho was the assh_le who did?” Nixon asks. “Is it [G. Gordon] Liddy? Is that the fellow? He must be nuts.” Haldeman says Mitchell pressured Liddy “to get more information, and as [Liddy] got more pressure, he pushed the people harder to move harder on.…” Both Nixon and Haldeman think that the FBI may believe the CIA, not the White House, is responsible for the burglary; Nixon says: “… when I saw that news summary item, I of course knew it was a bunch of crap, but I thought ah, well it’s good to have them off on this wild hair thing because when they start bugging us, which they have, we’ll know our little boys will not know how to handle it. I hope they will though. You never know. Maybe, you think about it. Good!” A short time later in the conversation, Nixon instructs Haldeman to tell his staffers not to directly lie under oath about their knowledge of the burglary, but to characterize it as “sort of a comedy of errors, bizarre,” and warn the FBI that to continue investigating the burglary would “open the whole Bay of Pigs thing up again. And, ah, because these people are plugging for, for keeps and that they should call the FBI in and say that we wish for the country, don’t go any further into this case.… That’s the way to put it, do it straight.” [AMDOCS Documents for the Study of American History, 6/1993] Later in the day, both Walters and CIA Director Richard Helms visit Haldeman to discuss the situation. Helms says that he has already heard from Gray, who had said, “I think we’ve run right into the middle of a CIA covert operation.” Helms and Walters both agree to pressure Gray to abandon the investigation, but their efforts are ineffective; the assistant US attorney in Washington, Earl Silbert, is driving the investigation, not the FBI. [Reeves, 2001, pp. 508-510]Gray: Improper Use of FBI - Soon after Nixon’s order, acting FBI Director L. Patrick Gray tells Nixon that his administration is improperly using the CIA to interfere in the FBI’s investigation of Watergate. Gray warns Nixon “that people on your staff are trying to mortally wound you.” Gray is himself sharing Watergate investigation files with the White House, but will claim that he is doing so with the approval of the FBI’s general counsel. [New York Times, 7/7/2005] It is unclear whether Gray knows that Nixon personally issued the order to the CIA. Soon after the order is issued, a number of the FBI agents on the case—15 to 20 in all—threaten to resign en masse if the order is carried out. One of the agents, Bob Lill, will later recall: “There was certainly a unanimity among us that we can’t back off. This is ridiculous. This smacks of a cover-up in itself, and we’ve got to pursue this. Let them know in no uncertain terms we’re all together on this. [T]his request from CIA is hollow.” [Woodward, 2005, pp. 189-191] No such mass resignation will take place. Because of evidence being classified and redacted (see July 5, 1974), it will remain unclear as to exactly if and how much the CIA may have interfered in the FBI’s investigation. 'Smoking Gun' - The secret recording of this meeting (see July 13-16, 1973), when revealed in the subsequent Watergate investigation, will become known as the “smoking gun” tape—clear evidence that Nixon knew of and participated in the Watergate cover-up. [Washington Post, 2008]

Vernon Walters. [Source: Medal of Freedom (.com)]White House counsel John Dean meets with Vernon Walters, the deputy director of the CIA, to ask if the agency can provide “financial assistance” to the five Watergate burglars. Two days later, after checking with his boss, CIA director Richard Helms, Walters refuses Dean’s request. Dean informs his White House and Nixon campaign associates, John Mitchell, Frederick LaRue, and Robert Mardian. On June 29, Dean meets with President Nixon’s personal lawyer, Herbert Kalmbach, and tells him that Mitchell, along with Nixon’s two top aides, H. R. Haldeman and John Ehrlichman, want Kalmbach to raise money for the Watergate burglars. Later that day, the finance chairman of the Nixon re-election campaign, Maurice Stans, gives Kalmbach $75,000 for the burglars. Over the next months, money will continue to be raised and disbursed to the burglars in what may be part of a blackmail scheme orchestrated by one of them, E. Howard Hunt (see March 21, 1973). [Spartacus Schoolnet, 8/2007]

CIA Director Richard Helms confers with FBI Director L. Patrick Gray over the FBI’s investigation into the Mexican bank account apparently used to launder illegal campaign contributions (see Before April 7, 1972). Helms tells Gray that the Midwest finance chairman of the Nixon campaign, Kenneth Dahlberg, last had contact with the CIA in 1961. The FBI is not sure what the nature of this contact between Dahlberg and the CIA is. The next day, Gray tells his deputy, Mark Felt, that neither Dahlberg nor Mexican lawyer Manuel Ogarrio Daguerre (see Before April 7, 1972) are to be interviewed because of “national security considerations.” The CIA’s deputy director, Vernon Walters, will tell Gray on June 27 and 28 that neither Dahlberg nor Ogarrio have any connection with the agency, and the CIA has no reason to object to their being interviewed. Gray will give belated permission for the FBI to interview the two on July 6, 1972. Dahlberg will initially lie to the FBI about some of the money he collected that found its way into the account of one of the Watergate burglars (see 2:30 a.m.June 17, 1972). Ogarrio will also be interviewed, but only after Dean reverses his initial decision not to allow the FBI to talk with him. (Note on source: This information comes from a 1974 FBI report about the efficacy of the investigation; much of the information in these sections concerning the CIA is redacted. Also, another section of the FBI report says that Gray canceled the meeting with Helms at the request of Nixon aide John Ehrlichman.) [O.T. Jacobson, 7/5/1974 ]

Acting FBI director L. Patrick Gray calls President Nixon to warn him that some of his White House aides are trying to “mortally wound” him by interfering with the FBI and the CIA in the Watergate investigation (see June 23, 1972). Nixon merely replies, “Pat, you just continue to conduct your aggressive and thorough investigation.” Gray later testifies (see August 1973), “I expected the president to ask me some questions.” When Gray hears nothing for two weeks from Nixon, he concludes that he is just being “alarmist” about the situation. [Time, 8/20/1973]

In a private meeting at Camp David, President Nixon demands that CIA director Richard Helms resign immediately. Helms has already refused to use CIA funds to pay “hush money” to the Watergate burglars (see June 26-29, 1972 and December 21, 1972). He knows that Nixon intends to pin some of the blame for the Watergate conspiracy on the agency, and so refuses to resign. Nixon will fire Helms in February 1973. [Spartacus Schoolnet, 8/2007; Spartacus Schoolnet, 8/2007]

Dorothy Hunt. [Source: Spartacus Educational]Dorothy Hunt, the wife of accused Watergate burglar E. Howard Hunt (see 2:30 a.m.June 17, 1972), dies in a plane crash that claims the lives of 44 others when it crashes just after takeoff from Chicago’s Midway Airport. Some believe that the plane crash may have been planned, though there is no hard evidence to support this contention. Blackmailing the White House? - Hunt and his fellow “Plumbers” (see Late June-July 1971) have been regularly receiving “hush money” payments from the Nixon presidential campaign to stay quiet about their activities (see March 20, 1971). With the prospect of going to prison, Hunt threatened to reveal juicy details of who exactly paid him to organize the Watergate burglary. His wife helped negotiate a payoff deal with Nixon aide Charles Colson. Hunt’s fellow Plumber, James McCord, will later claim that Dorothy Hunt said that her husband has information that would “blow the White House out of the water.” She was, Colson later admits, “upset at the interruption of payments from Nixon’s associates to Watergate defendants.” Former Attorney General John Mitchell, the head of Nixon’s re-election organization, arranged to have Nixon aide Frederick LaRue pay the Hunts $250,000 to keep their mouths shut. The day of the crash, Dorothy Hunt had arranged to meet with CBS journalist Michelle Clark, perhaps to discuss the Watergate investigation. Clark, Dorothy Hunt, and Illinois congressman George Collins are aboard the plane, United Airlines Flight 533, when it crashes into a Chicago neighborhood; all three die. Hunt is reported to be carrying $10,000 in cash as a partial payoff for the burglars (see February 28, 1973), but some sources will later claim that she was carrying far more. [Spartacus Schoolnet, 8/2007] Shortly after the crash, White House aides H. R. Haldeman and John Ehrlichman tell Nixon that Mrs. Hunt had distributed $250,000 in cash to her husband and the other Watergate burglars. The cash was delivered to Mrs. Hunt by White House courier Tony Ulasewicz, whose standard procedure was to take cash from the White House to Washington’s National Airport and leave the money in a rented locker. [Reeves, 2001, pp. 551] In October 1974, Watergate burglar Bernard Barker will confirm that Dorothy Hunt was the burglars’ connection to the White House. Barker will recall that, months after the burglary, he met her in Miami, where she told him, “From now on, I will be your contact.” [Harper's, 10/1974]FBI 'Swarms' Crash Site - One reporter, Lalo J. Gastriani, later reports that just after the crash, the downed plane is swarmed by “a battalion of plainclothes operatives in unmarked cars parked on side streets.” The neighbors who report this to Gastriani say that some of the “operatives” look like “FBI types,” and one neighbor recognizes a “rescue worker” as a CIA agent. Gastriani’s account sounds like the worst conspiracy theory and is anything but conclusive, but future FBI director William Ruckelshaus will later admit that his agency had over 50 agents at the crash site. Interestingly, one of Colson’s aides directly involved in overseeing Hunt’s “Plumbers,” Egil Krogh, will be named as undersecretary of transportation one day after the crash; the position gives Krogh direct control over the two agencies responsible for investigating the crash. Another Nixon aide, Dwight Chapin, soon becomes a top executive at United Airlines. [Spartacus Schoolnet, 8/2007]

Accused Watergate burglar James McCord (see 2:30 a.m.June 17, 1972) writes a letter to former Nixon aide Jack Caulfield in an attempt to warn the Nixon administration not to try to pin the blame for Watergate on the CIA, as some White House aides have suggested. McCord writes in part: “Sorry to have to write you this letter but felt you had to know. If Helms goes [Richard Helms, the director of the CIA, who was asked to resign by Nixon—see November 20, 1972)], and if the WG [Watergate] operation is laid at the CIA’s feet, where it does not belong, every tree in the forest will fall. It will be a scorched desert. The whole matter is at the precipice right now. Just pass the message that if they want it to blow, they are on exactly the right course. I’m sorry that you will get hurt in the fallout.” [Spartacus Schoolnet, 8/2007]

CIA Counterintelligence Director James Angleton. [Source: CI Centre.com]CIA Director James Schlesinger orders an internal review of CIA surveillance operations against US citizens. The review finds dozens of instances of illegal CIA surveillance operations against US citizens dating back to the 1950s, including break-ins, wiretaps, and the surreptitious opening of personal mail. The earlier surveillance operations were not directly targeted at US citizens, but against “suspected foreign intelligence agents operating in the United States.” Schlesinger is disturbed to find that the CIA is currently mounting illegal surveillance operations against antiwar protesters, civil rights organizations, and political “enemies” of the Nixon administration. In the 1960s and early 1970s, CIA agents photographed participants in antiwar rallies and other demonstrations. The CIA also created a network of informants who were tasked to penetrate antiwar and civil rights groups and report back on their findings. At least one antiwar Congressman was placed under surveillance, and other members of Congress were included in the agency’s dossier of “dissident Americans.” As yet, neither Schlesinger nor his successor, current CIA Director William Colby, will be able to learn whether or not Schlesinger’s predecessor, Richard Helms, was asked by Nixon officials to perform such illegal surveillance, though both Schlesinger and Colby disapproved of the operations once they learned of them. Colby will privately inform the heads of the House and Senate Intelligence Committees of the domestic spying engaged in by his agency. The domestic spying program was headed by James Angleton, who is still serving as the CIA’s head of counterintelligence operations, one of the most powerful and secretive bureaus inside the agency. It is Angleton’s job to maintain the CIA’s “sources and methods of intelligence,” including the prevention of foreign “moles” from penetrating the CIA. But to use counterintelligence as a justification for the domestic spying program is wrong, several sources with first-hand knowledge of the program will say in 1974. “Look, that’s how it started,” says one. “They were looking for evidence of foreign involvement in the antiwar movement. But that’s not how it ended up. This just grew and mushroomed internally.” The source continues, speaking hypothetically: “Maybe they began with a check on [Jane] Fonda. They began to check on her friends. They’d see her at an antiwar rally and take photographs. I think this was going on even before the Huston plan” (see July 26-27, 1970 and December 21, 1974). “This wasn’t a series of isolated events. It was highly coordinated. People were targeted, information was collected on them, and it was all put on [computer] tape, just like the agency does with information about KGB agents. Every one of these acts was blatantly illegal.” Schlesinger begins a round of reforms in the CIA, a program continued by Colby. [New York Times, 12/22/1974 ]

In 1973 Afghan Prince Muhammad Daoud ousts the Afghan king with help from the Soviet Union, and establishes an Afghan republic. The CIA in turn begins funding Islamist extremists, including Gulbuddin Hekmatyar, as a resistance movement opposing the Soviets. US allies Iran, with its intelligence agency SAVAK, and Pakistan, with its intelligence agency the ISI, play an important role in funneling weapons and other forms of assistance to the Afghan Islamist militants. After the pro-Soviet coup in April 1978, the Islamic militants with the support of the ISI carry out a massive campaign of terrorism, assassinating hundreds of teachers and civil servants. [Dreyfuss, 2005, pp. 260 - 263]

President Nixon and senior aide Charles Colson discuss the Watergate trial just underway (see January 8-11, 1973). Nixon has apparently just learned that someone in his re-election campaign planted electronic surveillance on Gary Hart, Democratic presidential candidate George McGovern’s campaign manager. Nixon tells Colson: “I understand [chief of staff H. R.] Haldeman is after some kid that bugged Gary Hart.… But how could that be? Watergate came before McGovern got off the ground, and I don’t know why the hell we bugged McGovern.” Colson replies: “Remember. That was after the California primary” (where McGovern clinched the nomination). Nixon grouses: “That’s the thing about all of this. We didn’t get a g_ddamn thing from any of it that I can see.” Colson disagrees: “Well, frankly, we did, but then, what they mainly used, we know.” Later in the conversation, Nixon brings up the problem of Watergate burglar E. Howard Hunt, who has what Nixon calls a “sensitive position” in the Watergate investigation—Hunt knows enough to blow the lid off the entire conspiracy, and has threatened to reveal it if he is not paid (see Mid-November, 1972). Colson says: “The others [the other six defendants] will just tell the truth and prove their case. But there is one advantage to it. There’ll be a hell of a lot of stuff that’ll come out.… Some counts will be dropped against Hunt. There will be appeals pending in the other cases.” Nixon adds, “As long as this trial is going on, the Congress will keep its g_ddamn, cotton-pickin’ hands off that trial.” Colson is sure the Senate Watergate Committee (see February 7, 1973) will begin immunizing witnesses to testify. Using the CIA Connection - As the conversation moves on, Colson agrees with Nixon that he thought the Democrats might drop their interest in the burglary after the election, especially since “I think they figured that these were all guys who were CIA.… And they were all taking orders from people… acting on behalf of John Mitchell [the former head of Nixon’s re-election campaign].” Nixon says that it should be a simple thing to grant Hunt executive clemency, considering Hunt’s wife is dead and he has a child with permanent brain damage suffered in an automobile accident. “We’ll build that son of a b_tch up like nobody’s business. We’ll have Buckley write a column and say that he should have clemency, if you’ve given 18 years of service.” Colson adds that Buckley “served under Hunt in the CIA.” (Conservative columnist William F. Buckley became a CIA agent in 1951, and worked under Hunt in Mexico City.) Abandoning Five of the Burglars - The five Cuban burglars, Colson says, are irrelevant. They “didn’t have any direct information.… I don’t give a damn if they spend five years in jail…. They can’t hurt us.… Hunt and [G. Gordon] Liddy: direct meetings and discussions are very incriminating to us.” Colson is not worried so much about Liddy, saying: “Apparently he’s one of those masochists. He enjoys punishing himself. That’s okay, as long as he remains stable. I mean, he’s tough…. [Hunt and Liddy are] both good, healthy, right-wing exuberants.” Nixon says wearily, “This… is the last damn fifty miles.” [Reston, 2007, pp. 191-195]

During the trial of the “Watergate Seven” (see January 8-11, 1973), unbeknownst to the press, the prosecution, or Judge John Sirica, Watergate defendant James McCord has been quietly writing anonymous letters to his former supervisors and friends at the CIA. McCord’s letters warn them that the White House intends to blame the agency for the Watergate conspiracy. His last unsigned letter goes to former White House aide Jack Caulfield, now working for the IRS (see December 21, 1972). “If [CIA director Richard] Helms goes and the Watergate operation is laid at CIA’s feet, where it does not belong, every tree in the forest will fall,” he writes, apparently alluding to his intention to tell what he knows. “Just pass the message that if they want it to blow, they are on exactly the right course.” Caulfield did indeed pass the message to the White House. During the trial, Caulfield met with McCord, representing “the highest level of the White House,” promising money and executive clemency for McCord if he will plead guilty and stay quiet. McCord does not take the deal (see March 19-23, 1973). [Reeves, 2001, pp. 561-562]

Convicted Watergate burglar James McCord (see January 30, 1973) writes a letter to the presiding judge, John Sirica, in response to Sirica’s requests for more information. McCord writes that he is “whipsawed in a variety of legalities”—he may be forced to testify to the Senate (see February 7, 1973), and he may be involved in future civil and other criminal proceedings. He also fears unspecified “retaliatory measures… against me, my family, and my friends should I disclose” his knowledge of the Watergate conspiracy. But McCord wants some leniency from Sirica in sentencing. McCord alleges that the five defendants who pled guilty did so under duress. The defendants committed perjury, McCord continues, and says that others are involved in the burglary. The burglary is definitely not a CIA operation, though “[t]he Cubans may have been misled” into thinking so. McCord writes, “I know for a fact that it was not,” implying inside knowledge of at least some CIA workings. McCord requests to speak with Sirica privately in the judge’s chambers, because he “cannot feel confident in talking with an FBI agent, in testifying before a Grand Jury whose US attorneys work for the Department of Justice, or in talking with other government representatives.” In his discussion with Sirica, he makes the most explosive charge of all: he and his fellow defendants lied at the behest of former Attorney General John Mitchell, now the head of the Nixon re-election campaign, and current White House counsel John Dean. [Bernstein and Woodward, 1974, pp. 275-276; Time, 1/7/1974; James W. McCord, Jr, 7/3/2007; Gerald R. Ford Library and Museum, 7/3/2007] It seems that McCord writes his letter to Sirica in retaliation for President Nixon’s firing of CIA director Richard Helms, and the White House’s attempts to pin the blame for the Watergate conspiracy on the CIA (see December 21, 1972).

US District Court Judge W. M. Byrne, Jr dismisses all charges against “Pentagon Papers” leaker Daniel Ellsberg (see March 1971) and Ellsberg’s co-defendant, Anthony Russo. [New York Times, 5/11/1973] Byrne was shocked to learn that Watergate burglars G. Gordon Liddy and E. Howard Hunt had supervised the burglary of the office of Ellsberg’s psychiatrist (see September 9, 1971). The source of the information was probably White House counsel John Dean. [Bernstein and Woodward, 1974, pp. 307] Initially, government prosecutors had insisted that Ellsberg had never been wiretapped, but FBI director William Ruckelshaus found that Ellsberg had indeed been recorded, during a conversation with former Kissinger aide Morton Halperin, who had been wiretapped (see June 19, 1972). Ruckelshaus tells the court that Halperin had been monitored for 21 months. It is the first public acknowledgement that the Nixon administration had used wiretaps against its political enemies (see June 27, 1973). Additionally, the government had broken the law when it failed to disclose the wiretap to Ellsberg’s defense lawyers. [Bernstein and Woodward, 1974, pp. 313] Byrne cites “improper government conduct shielded so long from public view” and an array of governmental misconduct in dismissing the charges. “The conduct of the government has placed the case in such a posture that it precludes the fair, dispassionate resolution of these issues by a jury,” Byrne rules. Ellsberg and Russo were charged with theft, conspiracy, and fraud in the case. The government’s actions in attempting to prosecute Ellsberg and Russo “offended a sense of justice,” he says. One of the governmental actions that Byrne decries was the wiretapping of Ellsberg’s telephone conversations by the FBI in 1969 and 1970, and the subsequent destruction of the tapes and surveillance logs of those conversations. Byrne is also disturbed by the burglary of the offices of Ellsberg’s psychiatrist by government agents (see June 30-July 1, 1971 and September 9, 1971), and the apparent involvement of the FBI and the CIA in the prosecution of the case at the “request of the White House.” Referring to the burglary, Byrne says, “We may have been given only a glimpse of what this special unit did.” After the trial, Ellsberg is asked if he would disclose the Pentagon documents again, and he replies, “I would do it tomorrow, if I could do it.” [New York Times, 5/11/1973]

Bob Woodward and Carl Bernstein in the offices of the Washington Post. [Source: Bettmann / Corbis]Washington Post reporter Bob Woodward writes a memo to his editor, Ben Bradlee, largely based on his meetings with his FBI background source, “Deep Throat” (FBI deputy director W. Mark Felt—see May 31, 2005). The memo is full of material that will soon come out in either Senate testimony or the media, but also contains some information that Woodward cannot sufficiently confirm to allow him to write a news report. One of the most explosive items Woodward writes is the line, “Dean talked with Senator Baker after Watergate committee formed and Baker is in the bag completely, reporting back directly to White House.” If this is true, then according to former White House counsel John Dean, now cooperating with the Senate investigation, then the ranking Republican senator on the committee, Howard Baker (R-TN), is a White House “mole,” providing information directly to the White House about the committee’s deliberations, discussions, and future plans. The memo also reports that President Nixon personally threatened Dean and that another White House aide, Jack Caulfield, threatened Watergate burglar James McCord by saying “your life is no good in this country if you don’t cooperate” with the White House efforts to keep the Watergate conspiracy secret. The list of “covert national and international things” done by the Nixon re-election campaign were begun by campaign chief John Mitchell: “The list is longer than anyone could imagine.” According to Felt, “[t]he covert activities involve the whole US intelligence community and are incredible.” Felt refuses to give Woodward “specifics because it is against the law. The cover-up had little to do with the Watergate, but was mainly to protect the covert operations.” Felt has also told Woodward that Nixon himself is being blackmailed by one of the Watergate burglars, E. Howard Hunt (see June 20-21, 1972), at a total cost of around $1 million; the blackmail scheme involves just about every Watergate-connected figure in the White House. One reason the White House “cut loose” Mitchell was because Mitchell could not raise his portion of the money. Felt also told Woodward that senior CIA officials, including CIA director Richard Helms and deputy director Vernon Walters, are involved to some extent. Dean has explosive information that he is ready to reveal, but “plumber” G. Gordon Liddy is willing to go to jail or even die before revealing anything. Finally, rumors are running through the White House and the law enforcement and intelligence communities that Nixon is having “fits of ‘dangerous’ depression.” Some of this information will later be confirmed and reported, some of it will remain unconfirmed. [Bernstein and Woodward, 1974, pp. 317-321; Spartacus Schoolnet, 8/2007] Felt also warns Woodward that he, fellow Post reporter Carl Bernstein, and others at the newspaper may be under CIA surveillance and may even be in personal danger. The reporters confirm much of what Felt provided in a discussion with a Dean associate the next day. But both reporters and the Post editors worry that the new information might be part of an elaborate White House scheme to set up the reporters with false, discreditable information. In the following months, information elicted in the Senate committee hearings verifies everything Felt told Woodward, except the warning about being possibly wiretapped by the CIA. That is never verified. [Bernstein and Woodward, 1974, pp. 317-321]

Howard Hunt during the Senate hearings. [Source: Bettmann / Corbis]Convicted Watergate burglar E. Howard Hunt testifies before the Senate Watergate Committee. He has been adamant about remaining silent before the investigators, both when he was interrogated by the FBI and the Watergate grand jury prosecutors, and had inspired the four so-called “Cubans” among the burglars—Bernard Barker, Virgilio Gonzales, Eugenio Martinez, and Frank Sturgis—to also remain silent. The “Cubans” are aghast at Hunt’s open testimony in the Senate; among other things, he confirms that former Nixon White House and campaign aides John Mitchell, John Dean, and Jeb Magruder were primarily responsible for the covert actions of the Nixon campaign, and says that the CIA is heavily involved in domestic activities. Hunt’s fellow White House aide, G. Gordon Liddy, who has also remained obstinately silent, is overtly disgusted at Hunt. When Hunt is returned to his jail cell, Liddy asks the guards to transfer him to another block, away from Hunt, and says, “From now on, it’s every man for himself.” [Vanderbilt University Television News Archive, 9/25/1973; Harper's, 10/1974]

Representatives William Moorhead (D-PA) and Frank Horton (R-NY) cosponsor a series of amendments designed to improve the effectiveness of the 1966 Freedom of Information Act (FOIA). The law is designed to make it easier for journalists, researchers, and citizens to see government records, but in practice the law is cumbersome: agencies have little impetus to produce documents in a timely manner, charge exorbitant fees for searching and copying documents, and too often battle FOIA requests in court. With Watergate fresh in legislators’ minds, the amendments to FOIA are welcome changes. The amendments expand the federal agencies covered, and mandate expediting of document and record requests. But as the bill nears final passage, senior officials of the Ford White House are mobilizing to challenge it. The CIA, Defense and Treasury Departments, Civil Service, and many on President Ford’s staff, including Deputy Chief of Staff Dick Cheney, all urge a veto. Most bothersome is the provision that a court can review a federal decision not to release a document requested under FOIA. Ford will veto the bill, but Congress will override the vetoes (see November 20, 1974). [Dubose and Bernstein, 2006, pp. 29-30]

A group of conservative strategic thinkers and policymakers attends a dinner party in Santa Monica, California. It is at this dinner party that the notorious “Team B” intelligence analysis team will be formed (see Early 1976). The cohost of the gathering is Albert Wohlstetter (see 1965), the eminent neoconservative academic and policy analyst. The next day, the guests join fellow conservative ideologues at a Beverly Hills conference called “Arms Competition and Strategic Doctrine.” Wohlstetter uses selectively declassified intelligence data to accuse the Pentagon of systematically underestimating Soviet military might. Wohlstetter will soon publish his arguments in the Wall Street Journal, Foreign Policy magazine, and Strategic Review. In July, respected Cold War figure Paul Nitze will use Wohlstetter’s assertions in testimony before the House Armed Services Committee to accuse Secretary of State Henry Kissinger and the CIA of dangerously underestimating both the Soviet Union’s military strength and its intentions. Some old-line Cold Warriors—many of whom find themselves in sympathy with the upstart neoconservatives—begin attacking both the CIA’s intelligence reporting and the US-Soviet policy of detente. Author Craig Unger will write, “This was the beginning of a thirty-year fight against the national security apparatus in which the [neoconservatives] mastered the art of manipulating intelligence in order to implement hard-line, militaristic policies.” [Unger, 2007, pp. 48-49]

The Glomar Explorer. [Source: Federation of American Scientists]The CIA attempts to carry out a secretive recovery, code-named Project Jennifer, of a Soviet Golf-II ballistic submarine that sunk in April 1968 in the Pacific Ocean. The submarine, carrying nuclear missiles, had sunk in over three miles of water. Analysts believe the submarine may have been a rogue on its way to attack Hawaii. The Pentagon is capable of carrying out the necessary deep-sea recovery effort itself, but President Nixon and Secretary of State Henry Kissinger decide instead to outsource the recovery to a private firm, Summa Corporation, headed by eccentric billionaire Howard Hughes. The cover story, which has Summa attempting to mine manganese from the ocean floor, is only preserved by CIA Director William Colby feeding Watergate leads to investigative journalist Seymour Hersh to keep Hersh from finding out more about the recovery mission (see February 1975). Summa has built an enormous recovery ship, the Glomar Explorer, for the mission, and the ship goes to the site. Kissinger badly wants the submarine for verification of arms control analyses of Soviet military and nuclear capabilities, as well as for his dealings with defense hawks such as Defense Secretary James Schlesinger. The Glomar has been on site since June, but for the last two weeks an armed Soviet trawler has been near the recovery vessel, taking photographs and making the civilian crew nervous. Many in Washington worry that the Soviets may try to board the Glomar. Kissinger feels that the “intelligence coup” of the recovered sub makes the possibility of a confrontation with the Soviets worthwhile. Ford, like Kissinger and the other senior officials informed of the operation, knows that the Glomar is completely vulnerable, but if President Ford sends US naval vessels to the site, the Soviets will do the same, thus escalating the situation. Worse, the closest Navy vessels are days away. This is Ford’s first test against the Soviets. Ford orders the Glomar to continue operations, but holds off sending naval vessels to the site just yet. [Werth, 2006, pp. 28-30; Federation of American Scientists, 9/14/2006] The rescue attempt is unsuccessful; as the sub is being pulled to the surface, it breaks apart, irretrievably scattering missiles, computer components, secret codes, and everything else of real value. [Werth, 2006, pp. 56] However, unconfirmed accounts say the CIA manages to retrieve a number of items, including three nuclear missiles, two nuclear torpedoes, the ship’s code machine, and various code books. [Federation of American Scientists, 9/14/2006]

The Justice Department’s Office of Planning and Evaluation (OPE) submits a report on the role and actions of the FBI in the Watergate investigations. The report finds that, even with the attempts of former Attorneys General John Mitchell and Richard Kleindienst, White House aides John Dean and Jeb Magruder, and others to “mislead and thwart the Bureau’s legitimate line of inquiry,” and the “contrived covers” used to direct attention away from the White House, the FBI investigation was “the ultimate key to the solution of not only the Watergate break-in (see 2:30 a.m.June 17, 1972) but the cover itself.” The report continues: “There can be no question that the actions of former Attorneys General Mitchell and Kleindienst served to thwart and/or impede the Bureau’s investigative effort. The actions of John W. Dean at the White House and Jeb S. Magruder at the Committee to Re-elect the President were purposefully designed to mislead and thwart the Bureau’s legitimate line of inquiry. At every stage of the investigation there were contrived covers placed in order to mislead the investigators.” The OPE notes the following problems in the investigation, and provides explanations of some: Providing information concerning ongoing investigations to the White House, and allowing Dean to actually sit in on interviews of White House personnel (see June 22, 1972). Failing to interview key members of CREEP, the Nixon re-election campaign organization, as well as allowing CREEP attorneys to sit in on interviews of CREEP employees and allowing those attorneys access to FBI investigative materials. The report says that the investigation initially focused on James McCord and E. Howard Hunt, and interviewed CREEP officials tied directly to them. The net was widened later on. However, the report acknowledges that many CREEP employees undoubtedly lied to FBI investigators, “most notably John Mitchell, Jeb Magruder, Bart Porter, Sally Harmony, and Maurice Stans.” Porter and Magruder in particular “lied most convincingly.” Another CREEP employee, Robert Reisner (Magruder’s assistant), was not interviewed because Reisner successfully hid from FBI investigators. The FBI believes it was Reisner who cleaned out the “Operation Gemstone” files from Magruder’s office (see January 29, 1972 and September 29, 1972). Numerous other financial and other files were also destroyed after being requested by the FBI, most notably Alfred Baldwin’s surveillance tapes and logs from the Democratic offices in the Watergate (see May 29, 1972). Many of these files were destroyed by G. Gordon Liddy. “It is apparent that most [CREEP] people in the summer of 1972 were quite willing to lie and/or tell us considerably less than the full truth,” the report notes. An untenable delay in searching and securing Watergate burglar E. Howard Hunt’s desk in the White House, putting the contents of that desk at risk of being removed, and the “[a]lleged activities by former Acting Director [L. Patrick] Gray to limit, contain, or obstruct FBI investigation of Watergate” (see June 22, 1972). Gray is known to have destroyed materials from Hunt’s desk given to him by Dean, and is known to have extensively interfered with the FBI’s investigation (see June 28-29, 1972 and Late December 1972). The report notes that while it cannot find specific evidence that Gray broke any laws in his attempts to impede the FBI’s investigation into the Watergate conspiracy, it is clear that Gray cooperated with the White House, specifically through Dean, to ensure that the White House was always aware of what avenues of investigation were being pursued. The OPE says that Gray’s destruction of files from Hunt’s safe did not necessarily impede the FBI’s investigation, because it has no way of knowing what was in those files. The report says that it is unfortunate that “many people make no distinction between the FBI’s actions and Mr. Gray’s actions.” Failure to interview key individuals with knowledge of the suspicious monies found in the burglars’ bank accounts. Failing to secure and execute search warrants for the burglars’ homes, automobiles, and offices. The OPE says that many of those issuing this criticism “should know better,” and claims that the FBI agents involved did their level best to obtain search warrants within the bounds of the law. The report notes that after the burglary, the assistant district attorney prosecuting the case, Earl Silbert, did not believe there was probable cause to search burglar James McCord’s home or office until after July 10, 1972, when Baldwin told the FBI that he had taken surveillance equipment to McCord’s home (see June 17, 1972). Even then, Silbert decided that because of the amount of time—23 days—that had expired, a search warrant would have been pointless. Failing to identify and interview a number of people listed in the burglars’ address books. The OPE report notes that the decision to interview far less than half of the names in the books was made by FBI agents in the Miami field office, and due to the “fast moving extensive investigation which was then being conducted,” the decision to only track down a selected few from the books was right and proper. The report notes that subsequent interviews by reporters of some of the people in the address books elicited no new information. The report also notes that Gray refused to countenance interviews of the remaining subjects in the address book while the trial of the seven burglars (see January 8-11, 1973) was underway. Failing to find and remove a surveillance device from the Democratic National Committee headquarters (see September 13, 1972). The OPE calls this failure “inexplicable.” Failure to thoroughly investigate CREEP agent Donald Segretti (see June 27, 1971, and Beyond) and other CREEP operatives. The OPE finds that because Segretti was initially uncooperative with FBI investigators, and because an “extensive investigation” turned up nothing to connect Segretti with the Watergate conspiracy, the agents chose not to continue looking into Segretti’s actions. Only after press reports named Segretti as part of a massive, White House-directed attempt to subvert the elections process (see October 7, 1972) did the FBI discuss reopening its investigation into Segretti. After reviewing its information, the FBI decided again not to bother with Segretti. The OPE finds that the decision was valid, because Segretti had not apparently broken any federal laws, and the FBI does not conduct violations of election laws unless specifically requested to do so by the Justice Department. The report also says that politics were a concern: by opening a large, extensive investigation into the Nixon campaign’s “dirty tricks,” that investigation might have impacted the upcoming presidential elections. Media leaks from within the FBI concerning key details about the investigation (see May 31, 2005). The report finds no evidence to pin the blame for the leaks on any particular individual. The report notes that New York Times reporter John Crewdson seemed to have unwarranted access to FBI documents and files, but says it has turned that matter over to another agency inside the bureau. Failing to interview, or adequately interview, key White House officials such as H. R. Haldeman, Charles Colson, Dwight Chapin, and others. The report justifies the decision not to interview Haldeman because the FBI had no information that Haldeman had any knowledge of, or involvement in, the burglary itself. “Alleged attempt on part of Department of Justice officials to limit, contain, or obstruct FBI investigation.” The report is particularly critical of Kleindienst’s concealment of his contact with Liddy about the burglary (see June 17, 1972). “Alleged attempt by CIA officials to interfere, contain, or impede FBI Watergate investigation.” The report notes that during the Senate Watergate Committee hearings, Republican co-chairman Howard Baker (R-TN) tried repeatedly to assert that the CIA was behind the burglary. The report calls Baker’s theory “intriguing” but says no evidence of CIA involvement on any operational level was ever found. The report notes that there is still no explanation for the discussions regarding the CIA paying the burglars (see June 26-29, 1972), or the CIA’s involvement with Hunt before the burglary—loaning him cameras, providing him with materials for a disguise, and helping Hunt get film from the first burglary developed. According to the report, Gray stopped the FBI from pursuing these leads. The FBI report says that the CIA involvement apparently had nothing to do with the Watergate burglary, but was more in support of Hunt’s activities with the Ellsberg break-in (see September 9, 1971). “Alleged activities on part of White House officials to limit, contain, or obstruct FBI Watergate investigation (Dean, Haldeman, Ehrlichman, Colson, et cetera).” The report notes, “There is absolutely no question but that the president’s most senior associates at the White House conspired with great success for nine months to obstruct our investigation.” The report says it was “common knowledge” throughout the investigation that the White House was paying only “lip service” to investigators’ requests for honest, complete answers; the report cites Dean as a specific offender. [O.T. Jacobson, 7/5/1974 ]

Law professor and House candidate Bill Clinton. [Source: About (.com)]Bill Clinton, a University of Arkansas law professor and candidate for the House of Representatives, says his opponent, John Paul Hammerschmidt (R-AR), is wrong in opposing President Nixon’s resignation, and is wrong to question whether Nixon committed impeachable offenses. Hammerschmidt now says the House should begin digging into Nixon’s alleged crimes, but Clinton retorts, “I don’t see how in the world he can say that when a year ago he was saying we should forget about it and he voted against giving funds for the House Judiciary Committee staff.” Clinton says: “I think it’s plain that the president should resign and spare the country the agony of this impeachment and removal proceeding. I think the country could be spared a lot of agony and the government could worry about inflation and a lot of other problems if he’d go on and resign.” There is “no question that an admission of making false statements to government officials and interfering with the FBI and the CIA is an impeachable offense,” Clinton says. [Arkansas Gazette, 8/8/1974]

E. Howard Hunt. [Source: Michael Brennan / Corbis]Convicted Watergate burglar and former CIA operative E. Howard Hunt (see 2:30 a.m.June 17, 1972) denies that his requests for money from the Nixon White House ever amounted to blackmail or “hush money” (see Mid-November, 1972 and January 8-9, 1973). Writing in Harper’s magazine, Hunt says his situation was comparable to a CIA agent caught and incarcerated in a foreign country. Those agents, he says, are entitled to expect that the government will financially support their families and continue to pay their salaries until the agents are released. Comparisons to CIA Agents Captured by Foreign Governments - He compares himself to American pilot Francis Gary Powers, whose U-2 surveillance plane was shot down over the Soviet Union during the Eisenhower administration, and who was financially supported by the government until his release. Another agent, John Downey, was kept prisoner for 20 years by China; when he returned, Hunt notes, he was paid twenty years’ worth of back salary. Hunt says that his situation is no different, and that not only was his efforts to secure large sums of cash from the Nixon administration understandable in the context of these captured intelligence agents, but something that should have been expected and handled without comment. “It was this time-honored understanding that for a time buoyed the hopes of the seven men who were indicted—and in two cases tried—for surreptitious entry into Democratic National Headquarters at the Watergate,” he writes. “That their attorneys’ fees were partially paid, that family living allowances were provided—and that these support funds were delivered by clandestine means—was to be expected.” Dropoff of White House Support - He names then-Nixon campaign chairman John Mitchell, Mitchell’s deputy Jeb Magruder, and then-White House counsel John Dean as the “official sponsors of their project.” The fact that the White House and the CIA paid on Hunt’s demands “clearly indicates,” Hunt claims, “a perception on the Haldeman-Ehrlichman level of the appropriateness of clandestine support.” (H. R. Haldeman and John Ehrlichman were then-President Nixon’s top aides and closest confidantes.) It is only because “[a]s time passed, however, the burden of providing moneys was assumed by less sophisticated personnel” that Hunt’s “urgent requests for overdue support began to be interpreted as threats, i.e. ‘blackmail.’” He says that Dean and perhaps Nixon “misconstrued” the situation. Since there was no question that the “Watergate Seven” would be granted immunity from prosecution, “there was no question of buying silence, of suppressing the truth with ‘hush money.’” He concludes: “The Watergate Seven understood the tradition of clandestine support. Tragically for the nation, not all the president’s men were equally aware.” [Harper's, 10/1974]Conflict with Other Versions of Events - Hunt’s reconstruction of events directly clashes with others’ recollections and interpretations, as well as the facts themselves (see June 20-21, 1972, June 26-29, 1972, June 29, 1972, July 7, 1972, July 25, 1972, August 29, 1972, December 8, 1972, January 10, 1973, January 10, 1973, March 13, 1973, March 21, 1973, March 21, 1973, and July 5, 1974).

1974 New York Times headline. [Source: New York Times]The Central Intelligence Agency (CIA) has repeatedly, and illegally, spied on US citizens for years, reveals investigative journalist Seymour Hersh in a landmark report for the New York Times. Such operations are direct violations of the CIA’s charter and the law, both of which prohibit the CIA from operating inside the United States. Apparently operating under orders from Nixon officials, the CIA has conducted electronic and personal surveillance on over 10,000 US citizens, as part of an operation reporting directly to then-CIA Director Richard Helms. In an internal review in 1973, Helms’s successor, James Schlesinger, also found dozens of instances of illegal CIA surveillance operations against US citizens both past and present (see 1973). Many Washington insiders wonder if the revelation of the CIA surveillance operations tie in to the June 17, 1972 break-in of Democratic headquarters at Washington’s Watergate Hotel by five burglars with CIA ties. Those speculations were given credence by Helms’s protests during the Congressional Watergate hearings that the CIA had been “duped” into taking part in the Watergate break-in by White House officials. Program Beginnings In Dispute - One official believes that the program, a successor to the routine domestic spying operations during the 1950s and 1960s, was sparked by what he calls “Nixon’s antiwar hysteria.” Helms himself indirectly confirmed the involvement of the Nixon White House, during his August 1973 testimony before the Senate Watergate investigative committee (see August 1973). Special Operations Carried Out Surveillance - The domestic spying was carried out, sources say, by one of the most secretive units in CI, the special operations branch, whose employees carry out wiretaps, break-ins, and burglaries as authorized by their superiors. “That’s really the deep-snow section,” says one high-level intelligence expert. The liaison between the special operations unit and Helms was Richard Ober, a longtime CI official. “Ober had unique and very confidential access to Helms,” says a former CIA official. “I always assumed he was mucking about with Americans who were abroad and then would come back, people like the Black Panthers.” After the program was revealed in 1973 by Schlesinger, Ober was abruptly transferred to the National Security Council. He wasn’t fired because, says one source, he was “too embarrassing, too hot.” Angleton denies any wrongdoing. Supposition That Civil Rights Movement 'Riddled' With Foreign Spies - Moscow, who relayed information about violent underground protesters during the height of the antiwar movement, says that black militants in the US were trained by North Koreans, and says that both Yasser Arafat, of the Palestinian Liberation Organization, and the KGB were involved to some extent in the antiwar movement, a characterization disputed by former FBI officials as based on worthless intelligence from overseas. For Angleton to make such rash accusations is, according to one member of Congress, “even a better story than the domestic spying.” A former CIA official involved in the 1969-70 studies by the agency on foreign involvement in the antiwar movement says that Angleton believes foreign agents are indeed involved in antiwar and civil rights organizations, “but he doesn’t know what he’s talking about.” 'Cesspool' of Illegality Distressed Schlesinger - According to one of Schlesinger’s former CIA associates, Schlesinger was distressed at the operations. “He found himself in a cesspool,” says the associate. “He was having a grenade blowing up in his face every time he turned around.” Schlesinger, who stayed at the helm of the CIA for only six months before becoming secretary of defense, informed the Department of Justice (DOJ) about the Watergate break-in, as well as another operation by the so-called “plumbers,” their burglary of Daniel Ellsberg’s psychiatrist’s office after Ellsberg released the “Pentagon Papers” to the press. Schlesinger began a round of reforms of the CIA, reforms that have been continued to a lesser degree by Colby. (Some reports suggest that CIA officials shredded potentially incriminating documents after Schlesinger began his reform efforts, but this is not known for sure.) Intelligence officials confirm that the spying did take place, but, as one official says, “Anything that we did was in the context of foreign counterintelligence and it was focused at foreign intelligence and foreign intelligence problems.” 'Huston Plan' - But the official also confirms that part of the illegal surveillance was carried out as part of the so-called “Huston plan,” an operation named for former White House aide Tom Charles Huston (see July 26-27, 1970) that used electronic and physical surveillance, along with break-ins and burglaries, to counter antiwar and civil rights protests, “fomented,” as Nixon believed, by so-called black extremists. Nixon and other White House officials have long denied that the Huston plan was ever implemented. “[O]bviously,” says one government intelligence official, the CIA’s decision to create and maintain dossiers on US citizens “got a push at that time.…The problem was that it was handled in a very spooky way. If you’re an agent in Paris and you’re asked to find out whether Jane Fonda is being manipulated by foreign intelligence services, you’ve got to ask yourself who is the real target. Is it the foreign intelligence services or Jane Fonda?” Huston himself denies that the program was ever intended to operate within the United States, and implies that the CIA was operating independently of the White House. Government officials try to justify the surveillance program by citing the “gray areas” in the law that allows US intelligence agencies to encroach on what, by law, is the FBI’s bailiwick—domestic surveillance of criminal activities—when a US citizen may have been approached by foreign intelligence agents. And at least one senior CIA official says that the CIA has the right to engage in such activities because of the need to protect intelligence sources and keep secrets from being revealed. Surveillance Program Blatant Violation of Law - But many experts on national security law say the CIA program is a violation of the 1947 law prohibiting domestic surveillance by the CIA and other intelligence agencies. Vanderbilt University professor Henry Howe Ransom, a leading expert on the CIA, says the 1947 statute is a “clear prohibition against any internal security functions under any circumstances.” Ransom says that when Congress enacted the law, it intended to avoid any possibility of police-state tactics by US intelligence agencies; Ransom quotes one Congressman as saying, “We don’t want a Gestapo.” Interestingly, during his 1973 confirmation hearings, CIA Director Colby said he believed the same thing, that the CIA has no business conducting domestic surveillance for any purpose at any time: “I really see less of a gray area [than Helms] in that regard. I believe that there is really no authority under that act that can be used.” Even high-level government officials were not aware of the CIA’s domestic spying program until very recently. “Counterintelligence!” exclaimed one Justice Department official upon learning some details of the program. “They’re not supposed to have any counterintelligence in this country. Oh my God. Oh my God.” A former FBI counterterrorism official says he was angry upon learning of the program. “[The FBI] had an agreement with them that they weren’t to do anything unless they checked with us. They double-crossed me all along.” Many feel that the program stems, in some regards, from the long-standing mistrust between the CIA and the FBI. How many unsolved burglaries and other crimes can be laid at the feet of the CIA and its domestic spying operation is unclear. In 1974, Rolling Stone magazine listed a number of unsolved burglaries that its editors felt might be connected with the CIA. And Senator Howard Baker (R-TN), the vice chairman of the Senate Watergate investigative committee, has alluded to mysterious links between the CIA and the Nixon White House. On June 23, 1972, Nixon told his aide, H.R. Haldeman, “Well, we protected Helms from a hell of a lot of things.” [New York Times, 12/22/1974 ]

Vice President Nelson Rockefeller (see December 19, 1974 and After) is instrumental in keeping Senate Democrats from finding out too much about the intelligence community’s excesses. When the New York Times reveals the existence of a decades-old illegal domestic surveillance program run by the CIA (see December 21, 1974), President Ford heads off calls from Democrats to investigate the program by appointing the “Rockefeller Commission” to investigate in the Democrats’ stead. Senate Democrats, unimpressed with the idea, create the Church Committee to investigate the intelligence community (see April, 1976). Rockefeller is adept at keeping critical documents out of the hands of the Church Committee and the press. When Senator Frank Church asks for materials from the White House, he is told that the Rockefeller Commission has them; when he asks Rockefeller for the papers, he is told that he cannot have them because only the president can authorize access. One Church aide later calls Rockefeller “absolutely brilliant” in denying them access in a friendly manner. “He winked and smiled and said, ‘Gee, I want to help you but, of course I can’t—not until we’ve finished our work and the president approves it,’” the aide recalls. Senator John Tower (R-TX), the vice chairman of the committee, will later reflect, “We were very skillfully finessed.” But even Rockefeller, who has his own history of involvement with the CIA, is taken aback at the excesses of the CIA, particularly its history of assassinating foreign leaders. Rockefeller will eventually turn that information over to the Church Committee, giving that body some of the most explosive evidence as yet made public against the agency. [US Senate, 7/7/2007]

The Los Angeles Times prints the first story on the apparently failed Project Jennifer, the CIA’s 1974 attempt to raise a sunken Soviet submarine (see June 20-August 14, 1974). [Federation of American Scientists, 9/14/2006] The New York Times’s Seymour Hersh had learned of the secret project in mid-1974, and had prepared a story for publication while it was still underway, but the CIA persuaded the newspaper not to publish the story. After the Los Angeles Times prints its piece, the New York Times publishes the Hersh story, with a lengthy explanation of the agreement not to publish the story almost a year before. [Salon, 12/22/2005]

Testifying before the Rockefeller Commission on the CIA’s activities in the US, the CIA’s Assistant Deputy Director for Operations David Blee indicates the agency does not spy on Americans. “We have always said that we did not operate that way [spying on the US’s own citizens], but that we went about it much more inefficiently, which is by penetrating the foreign government or foreign subversive operation and finding if that led us to an American, rather than trying to see what Americans were doing, and seeing if they were in touch with those groups,” he tells the commission. “In this, we operate very differently from practically all of the other security and intelligence services, which typically watch their own citizens to see what they are doing.” [US Congress, 4/13/1976]

Ruud Lubbers. [Source: ru(.nl)]After the BVD, a Dutch intelligence agency, informs the CIA that it intends to arrest A. Q. Khan over the passage of nuclear secrets to Pakistan (see Mid-October 1975), the CIA tells the Dutch to let Khan continue with his activities. Former Dutch Minister of Economc Affairs Ruud Lubbers will say, “The Americans wished to follow and watch Khan to get more information.” Lubbers questions this and the CIA tells him to block Khan’s access to the secrets, which the Dutch do by promoting him to a job where he no longer has access to sensitive data from the uranium enrichment company Urenco. Lubbers will later suggest that the real reason the US does not want Khan arrested is because of its interest in helping Pakistan, an enemy of Soviet-leaning India. Because Khan no longer has access to the sensitive data after his promotion, the CIA cannot find out anything by monitoring him. In addition, the promotion alerts Khan to the fact he may be under surveillance, and he flees to Pakistan in mid-December. Authors David Armstrong and Joe Trento will later comment: “What no one yet realized was that Khan had already absconded with the plans for almost every centrifuge on Urenco’s drawing board, including the all-important G-2 [centrifuge]. It would prove to be one of the greatest nuclear heists of all time.” [Armstrong and Trento, 2007, pp. 54]

In preparation for the upcoming “Halloween Massacre” (see November 4, 1975 and After), Chief of Staff Donald Rumsfeld, who has what he thinks are secret ambitions for the presidency (see September 21, 1974 and After), convinces President Ford to name George H. W. Bush as CIA director because of that position’s political liabilities. When Bush accepts the position, Rumsfeld says this will “sink the son of a b_tch for good.” During his Senate confirmation hearings, Bush will publicly be asked to promise that he won’t be Ford’s running mate in 1976. “Bush thought that was a total violation of his Constitutional rights,” Pete Seeley, who will become Bush’s press secretary in 1981, will recall. “He was not happy. But he was always a team player and he did as he was asked.” Bush always believes Rumsfeld planted this question. Bush will never forgive Rumsfeld for trying to sabotage his political aspirations. [Unger, 2007, pp. 52-53]

Agha Hasan Abedi. [Source: Terry Kirk / Financial Times]Investigative journalist Joseph Trento will later report that in 1976, the Safari Club, a newly formed secret cabal of intelligence agencies (see September 1, 1976-Early 1980s), decides it needs a network of banks to help finance its intelligence operations. Saudi Intelligence Minister Kamal Adham is given the task. “With the official blessing of George H. W. Bush as the head of the CIA, Adham transformed a small Pakistani merchant bank, the Bank of Credit and Commerce International (BCCI), into a world-wide money-laundering machine, buying banks around the world to create the biggest clandestine money network in history.” BCCI was founded in 1972 by a Pakistani named Agha Hasan Abedi, who was an associate of Adham’s. Bush himself has an account at BCCI established while still director of the CIA. French customs will later raid the Paris BCCI branch and discover the account in Bush’s name. [Trento, 2005, pp. 104] Bush, Adham, and other intelligence heads work with Abedi to contrive “a plan that seemed too good to be true. The bank would solicit the business of every major terrorist, rebel, and underground organization in the world. The intelligence thus gained would be shared with ‘friends’ of BCCI.” CIA operative Raymond Close works closely with Adham on this. BCCI taps “into the CIA’s stockpile of misfits and malcontents to help man a 1,500-strong group of assassins and enforcers.” [Trento, 2005, pp. 104] Soon, BCCI becomes the fastest growing bank in the world. Time magazine will later describe BCCI as not just a bank, but also “a global intelligence operation and a Mafia-like enforcement squad. Operating primarily out of the bank’s offices in Karachi, Pakistan, the 1,500-employee black network has used sophisticated spy equipment and techniques, along with bribery, extortion, kidnapping and even, by some accounts, murder. The black network—so named by its own members—stops at almost nothing to further the bank’s aims the world over.” [Time, 7/22/1991]

CPD logo. [Source: Committee on the Present Danger]A group of hardline Cold Warriors and neoconservatives revive the once-influential Committee on the Present Danger (CPD) in order to promote their anti-Soviet, pro-military agenda. The CPD is an outgrowth of the Coalition for a Democratic Majority (CDM), itself a loose amalgamation of neoconservatives and Democratic hawks. Confederation of Establishment Conservatives, Neoconservatives, and Hawkish Democrats - The CPD is led by Eugene Rostow, the head of the CDM’s foreign policy task force. Others include CIA spymaster William Casey; iconic Cold War figure and “Team B” member Paul Nitze (see January 1976 and Late November, 1976); established neoconservatives such as Norman Podhoretz and Team B leader Richard Pipes (see Early 1976); rising neoconservative stars like Jeane Kirkpatrick, Midge Decter, Donald Brennan, and Richard Perle; conservative Democrats such as Nitze and former Secretary of State Dean Rusk; established Republicans such as House representative Claire Booth Luce (R-CT), David Packard, Nixon’s deputy secretary of defense, Andrew Goodpaster, Eisenhower’s National Security Adviser, millionaire Richard Mellon Scaife; and famed military officers such as Admiral Elmo Zumwalt. [Unger, 2007, pp. 58-59; Scoblic, 2008, pp. 99-100]No 'Realists' - Author Craig Unger will write: “Ultimately, in the CPD, one could see the emerging fault lines in the Republican Party, the ideological divide that separated hardline neocons and Cold Warriors from the more moderate, pragmatic realists—i.e. practitioners of realpolitik such as Henry Kissinger, Brent Scowcroft, George H. W. Bush, and James Baker. All of the latter were conspicuously absent from the CPD roll call.” [Unger, 2007, pp. 58-59]Advocates US First Strike against USSR - Like the CDM and Team B, the CPD believes that the entire concept of detente with the Soviet Union is an abject failure, and the only way to deal with the ravenously hegemonical USSR is through armed confrontation. Like Team B (see November 1976), the CPD insists, without proof, that the USSR has made far greater strides in increasing the size and striking power of its nuclear arsenal; and like Team B, no amount of debunking using factual information stops the CPD from making its assertions (see November 1976). The US must drastically increase its stockpile of nuclear and conventional weapons, it maintains, and also be prepared to launch a nuclear first strike in order to stop the USSR from doing the same. In April 1977, the CPD evokes the familiar neoconservative specter of appeasement by writing, “The Soviet military build-up of all its armed forces over the past quarter century is, in part, reminiscent of Nazi Germany’s rearmament in the 1930s.” Author J. Peter Scoblic will observe, “The CPD saw itself as a collection of [Winston] Churchills facing a country of [Neville] Chamberlains.” In 1978, the CPD predicts, “The early 1980s threaten to be a period of Soviet strategic nuclear superiority in which America’s second-strike capability will become vulnerable to a Soviet pre-emptive attack without further improvements in US weapons.” [Unger, 2007, pp. 58-59; Scoblic, 2008, pp. 99-100]Spreading Propaganda - According to a 2004 BBC documentary, the CPD will produce documentaries, publications, and provide guests for national talk shows and news reports, all designed to spread fear and encourage increases in defense spending, especially, as author Thom Hartmann will write, “for sophisticated weapons systems offered by the defense contractors for whom neocons would later become lobbyists.” [Common Dreams (.org), 12/7/2004; BBC, 1/14/2005]

CIA manager David Blee files a report warning others at the agency about the situation in Iran. Blee, who has some experience in Middle Eastern affairs (see (1967)), cautions that the US knows little about Iranian leader Shah Mohammed Reza Pahlavi, in particular his stockpiling of military equipment. [Los Angeles Times, 8/18/2000]

Richard Pipes. [Source: Mariusz Kubik]After George H. W. Bush becomes the head of the CIA (see November 4, 1975 and After), he decides to break with previous decisions and allow a coterie of neoconservative outsiders to pursue the allegations of Albert Wohlstetter that the CIA is seriously underestimating the threat the USSR poses to the US (see 1965), allegations pushed by hardliners on the President’s Foreign Intelligence Advisory Board. Internal Opposition - Bush’s predecessor, William Colby, had steadfastly refused to countenance such a project, saying, “It is hard for me to envisage how an ad hoc ‘independent’ group of government and non-government analysts could prepare a more thorough, comprehensive assessment of Soviet strategic capabilities—even in two specific areas—than the intelligence community can prepare.” (Bush approves the experiment by notating on the authorization memo, “Let ‘er fly!”) The national intelligence officer in charge of the National Intelligence Estimate on the USSR, Howard Stoertz, will later recall: “Most of us were opposed to it because we saw it as an ideological, political foray, not an intelligence exercise. We knew the people who were pleading for it.” But Bush, on the advice of deputy national security adviser William Hyland, agrees to the exercise. Hyland says the CIA had been getting “too much flak for being too peacenik and detentish…. I encouraged [Bush] to undertake the experiment, largely because I thought a new director ought to be receptive to new views.” The neocon team of “analysts” becomes known as “Team B,” with “Team A” being the CIA’s own analytical team. It is unprecedented to allow outsiders to have so much access to highly classified CIA intelligence as Bush is granting the Team B neocons, so the entire project is conducted in secret. CIA analyst Melvin Goodman later says that President Ford’s chief of staff, Dick Cheney, is one of the driving forces behind Team B. The outside analysts “wanted to toughen up the agency’s estimates,” Goodman will say, but “Cheney wanted to drive [the CIA] so far to the right it would never say no to the generals.” [Dubose and Bernstein, 2006, pp. 208; Unger, 2007, pp. 53-55]Political Pressure - Ford’s political fortunes help push forward the Team B experiment. Ford has been a strong proponent of detente with the Soviet Union, but his poll numbers are sagging and he is facing a strong presidential primary challenger in Governor Ronald Reagan (R-CA), an avowed hardliner. Reagan is making hay challenging Ford’s foreign policy, claiming that the so-called “Ford-Kissinger” policies have allowed the Soviet Union to leap ahead of the US both militarily and geopolitically. In response, Ford has lurched to the right, banning the word “detente” from speeches and statements by White House officials, and has been responsive to calls for action from the newly reforming Committee on the Present Danger (CPD—see 1976). In combination, these political concerns give Bush the justification he wants to push forward with the Team B experiment. Three B Teams - According to Carter administration arms control official Anne Cahn, there are actually three “B” teams. One studies Soviet low-altitude air defense capabilities, one examines Soviet intercontinental ballistic missile (ICBM) accuracy, and the third, chaired by Harvard Sovietologist Richard Pipes, examines Soviet strategic policy and objectives. It is Pipes’s team that becomes publicly known as “Team B.” [Bulletin of Atomic Scientists, 4/1993]Assembling the Team - Pipes fits in well with his small group of ideological hardliners. He believes that the USSR is determined to fight and win a nuclear war with the US, and he is bent on putting together an analysis that proves his contention. He asks Cold War icon Paul Nitze, the former Secretary of the Navy, to join the team. Richard Perle, a core member, has Pipes bring in Paul Wolfowitz, one of Wohlstetter’s most devout disciples. Wolfowitz immediately begins arguing for the need to deploy tactical nuclear weapons in Europe. The “incestuous closeness” of the members, as Cahn later calls it, ensures that the entire group is focused on the same goals as Wohlstetter and Pipes, with no dissension or counterarguments. Other key members include William von Cleave and Daniel Graham. The entire experiment, Cahn will write, “was concocted by conservative cold warriors determined to bury détente and the SALT process. Panel members were all hard-liners,” and many are members of the newly reconstituted “Committee on the Present Danger” (see 1976). The experiment is “leaked to the press in an unsuccessful attempt at an ‘October surprise’ [an attempt to damage the presidential hopes of Democrat Jimmy Carter—see Late November, 1976]. But most important, the Team B reports became the intellectual foundation of ‘the window of vulnerability’ and of the massive arms buildup that began toward the end of the Carter administration and accelerated under President Reagan.” Team B will formally debate its CIA adversaries, “Team A,” towards the end of the year (see November 1976). [Bulletin of Atomic Scientists, 4/1993; Quarterly Journal of Speech, 5/2006 ; Unger, 2007, pp. 53-55]'Designed to be Prejudiced' - In 2008, author J. Peter Scoblic will note, “Team B was designed to be prejudiced.” Pipes, the Soviet experts, holds a corrosive hatred of the Soviet Union, in part stemming from his personal experiences as a young Jew in Nazi-occupied Warsaw, and his belief that the Soviet system is little different from the Nazis. When asked why his team is stacked with hardline opponents of arms negotiations and diplomacy of any kind with the USSR, Pipes replies, “There is no point in another, what you might call, optimistic view.” Scoblic will write, “Team B, in short, begged the question. Its members saw the Soviet threat not as an empirical problem but as a matter of faith.” He will add, “For three months, the members of Team B pored over the CIA’s raw intelligence data—and used them to reaffirm their beliefs.” [Scoblic, 2008, pp. 93-94]

Representative Otis Pike. [Source: Spartacus Educational]A House of Representatives committee, popularly known as the Pike Committee after its chairman, Otis Pike (D-NY), investigates questionable US intelligence activities. The committee operates in tandem with the Senate’s investigation of US intelligence activities, the Church Committee (see April, 1976). Pike, a decorated World War II veteran, runs a more aggressive—some say partisan—investigation than the more deliberate and politically balanced Church Committee, and receives even less cooperation from the White House than does the Church investigation. After a contentious year-long investigation marred by inflammatory accusations and charges from both sides, Pike refuses demands from the CIA to redact huge portions of the report, resulting in an accusation from CIA legal counsel Mitchell Rogovin that the report is an “unrelenting indictment couched in biased, pejorative and factually erroneous terms.” Rogovin also tells the committee’s staff director, Searle Field, “Pike will pay for this, you wait and see…. There will be a political retaliation…. We will destroy him for this.” (It is hard to know exactly what retaliation will be carried out against Pike, who will resign from Congress in 1978.) Battle to Release Report - On January 23, 1976, the investigative committee voted along party lines to release the report unredacted, sparking a tremendous outcry among Republicans, who are joined by the White House and CIA Director William Colby in an effort to suppress the report altogether. On January 26, the committee’s ranking Republican, Robert McCory, makes a speech saying that the report, if released, would endanger national security. On January 29, the House votes 246 to 124 not to release the report until it “has been certified by the President as not containing information which would adversely affect the intelligence activities of the CIA.” A furious Pike retorts, “The House just voted not to release a document it had not read. Our committee voted to release a document it had read.” Pike threatens not to release the report at all because “a report on the CIA in which the CIA would do the final rewrite would be a lie.” The report will never be released, though large sections of it will be leaked within days to reporter Daniel Schorr of the Village Voice, and printed in that newspaper. Schorr himself will be suspended from his position with CBS News and investigated by the House Ethics Committee (Schorr will refuse to disclose his source, and the committee will eventually decide, on a 6-5 vote, not to bring contempt of Congress charges against him). [Spartacus Educational, 2/16/2006] The New York Times will follow suit and print large portions of the report as well. The committee was led by liberal Democrats such as Pike and Ron Dellums (D-CA), who said even before the committee first met, “I think this committee ought to come down hard and clear on the side of stopping any intelligence agency in this country from utilizing, corrupting, and prostituting the media, the church, and our educational system.” The entire investigation is marred by a lack of cooperation from the White House and the CIA. [Gerald K. Haines, 1/20/2003]Final Draft Accuses White House, CIA of 'Stonewalling,' Deception - The final draft of the report says that the cooperation from both entities was “virtually nonexistent,” and accuses both of practicing “foot dragging, stonewalling, and deception” in their responses to committee requests for information. CIA archivist and historian Gerald Haines will later write that the committee was thoroughly deceived by Secretary of State Henry Kissinger, who officially cooperated with the committee but, according to Haines, actually “worked hard to undermine its investigations and to stonewall the release of documents to it.” [Spartacus Educational, 2/16/2006] The final report accuses White House officials of only releasing the information it wanted to provide and ignoring other requests entirely. One committee member says that trying to get information out of Colby and other CIA officials was like “pulling teeth.” For his part, Colby considers Pike a “jackass” and calls his staff “a ragtag, immature, and publicity-seeking group.” The committee is particularly unsuccessful in obtaining information about the CIA’s budget and expenditures, and in its final report, observes that oversight of the CIA budget is virtually nonexistent. Its report is harsh in its judgments of the CIA’s effectiveness in a number of foreign conflicts, including the 1973 Mideast war, the 1968 Tet offensive in Vietnam, the 1974 coups in Cyprus and Portugal, the 1974 testing of a nuclear device by India, and the 1968 invasion of Czechoslovakia by the Soviet Union, all of which the CIA either got wrong or failed to predict. The CIA absolutely refused to provide any real information to either committee about its involvement in, among other foreign escapades, its attempt to influence the 1972 elections in Italy, covert actions in Angola, and covert aid to Iraqi Kurds from 1972 through 1975. The committee found that covert actions “were irregularly approved, sloppily implemented, and, at times, had been forced on a reluctant CIA by the President and his national security advisers.” Indeed, the Pike Committee’s final report lays more blame on the White House than the CIA for its illegal actions, with Pike noting that “the CIA does not go galloping off conducting operations by itself…. The major things which are done are not done unilaterally by the CIA without approval from higher up the line.… We did find evidence, upon evidence, upon evidence where the CIA said: ‘No, don’t do it.’ The State Department or the White House said, ‘We’re going to do it.’ The CIA was much more professional and had a far deeper reading on the down-the-road implications of some immediately popular act than the executive branch or administration officials.… The CIA never did anything the White House didn’t want. Sometimes they didn’t want to do what they did.” [Gerald K. Haines, 1/20/2003]

President Ford issues Executive Order 11905, which limits the power of the CIA, the NSA, and military intelligence to engage in surveillance of US citizens. Perhaps its most well-known provision is a total ban on “political assassinations” by US government personnel. [Gerald R. Ford, 2/18/1976; Roberts, 2008, pp. 38] The provision is sparked by the Church Commission’s finding (see April, 1976) that assassination is “unacceptable in our society,” and a political embarassment, especially botched attempts such as the CIA’s efforts to kill Cuba’s Fidel Castro. [Grant J. Lilly, 4/6/2006]

Senator Frank Church. [Source: Wally McNamee / Corbis]A Senate committee tasked to investigate the activities of US intelligence organizations finds a plethora of abuses and criminal behaviors, and recommends strict legal restraints and firm Congressional oversight. The “Church Committee,” chaired by Senator Frank Church (D-ID), a former Army intelligence officer with a strong understanding of the necessity for intelligence-gathering, notes in its final report that the CIA in particular had been overly cooperative with the Nixon administration in spying on US citizens for political purposes (see December 21, 1974); US intelligence agencies had also gone beyond the law in assassination attempts on foreign government officials in, among other places, Africa, Latin America, and Vietnam. Church himself accused the CIA of providing the White House with what, in essence, is a “private army,” outside of Congressional oversight and control, and called the CIA a “rogue elephant rampaging out of control.” The committee will reveal the existence of hitherto-unsuspected operations such as HT Lingual, which had CIA agents secretly opening and reading US citizens’ international mail, and other operations which included secret, unauthorized wiretaps, dossier compilations, and even medical experiments. For himself, Church, the former intelligence officer, concluded that the CIA should conduct covert operations only “in a national emergency or in cases where intervention is clearly in tune with our traditional principles,” and restrain the CIA from intervening in the affairs of third-world nations without oversight or consequence. CIA director William Colby is somewhat of an unlikely ally to Church; although he does not fully cooperate with either the Church or Pike commissions, he feels that the CIA’s image is badly in need of rehabilitation. Indeed, Colby later writes, “I believed that Congress was within its constitutional rights to undertake a long-overdue and thoroughgoing review of the agency and the intelligence community. I did not share the view that intelligence was solely a function of the Executive Branch and must be protected from Congressional prying. Quite the contrary.” Conservatives later blame the Church Commission for “betray[ing] CIA agents and operations,” in the words of American Spectator editor R. Emmett Tyrrell, Jr, referencing the 1975 assassination of CIA station chief Richard Welch in Greece. The chief counsel of the Church Committee accuses CIA defenders and other conservatives of “danc[ing] on the grave of Richard Welch in the most cynical way.” It is documented fact that the Church Commission exposed no agents and no operations, and compromised no sources; even Colby’s successor, George H.W. Bush, later admits that Welch’s death had nothing to do with the Church Committee. (In 1980, Church will lose re-election to the Senate in part because of accusations of his committee’s responsibility for Welch’s death by his Republican opponent, Jim McClure.) [American Prospect, 11/5/2001; History Matters Archive, 3/27/2002; Assassination Archives and Research Center, 11/23/2002]Final Report Excoriates CIA - The Committee’s final report concludes, “Domestic intelligence activity has threatened and undermined the Constitutional rights of Americans to free speech, association and privacy. It has done so primarily because the Constitutional system for checking abuse of power has not been applied.” The report is particularly critical of the CIA’s successful, and clandestine, manipulation of the US media. It observes: “The CIA currently maintains a network of several hundred foreign individuals around the world who provide intelligence for the CIA and at times attempt to influence opinion through the use of covert propaganda. These individuals provide the CIA with direct access to a large number of newspapers and periodicals, scores of press services and news agencies, radio and television stations, commercial book publishers, and other foreign media outlets.” The report identifies over 50 US journalists directly employed by the CIA, along with many others who were affiliated and paid by the CIA, and reveals the CIA’s policy to have “their” journalists and authors publish CIA-approved information, and disinformation, overseas in order to get that material disseminated in the United States. The report quotes the CIA’s Chief of the Covert Action Staff as writing, “Get books published or distributed abroad without revealing any US influence, by covertly subsidizing foreign publicans or booksellers.…Get books published for operational reasons, regardless of commercial viability.…The advantage of our direct contact with the author is that we can acquaint him in great detail with our intentions; that we can provide him with whatever material we want him to include and that we can check the manuscript at every stage…. [The agency] must make sure the actual manuscript will correspond with our operational and propagandistic intention.” The report finds that over 1,000 books were either published, subsidized, or sponsored by the CIA by the end of 1967; all of these books were published in the US either in their original form or excerpted in US magazines and newspapers. “In examining the CIA’s past and present use of the US media,” the report observes, “the Committee finds two reasons for concern. The first is the potential, inherent in covert media operations, for manipulating or incidentally misleading the American public. The second is the damage to the credibility and independence of a free press which may be caused by covert relationships with the US journalists and media organizations.” CIA Withheld Info on Kennedy Assassination, Castro Plots, King Surveillance - The committee also finds that the CIA withheld critical information about the assassination of President John F. Kennedy from the Warren Commission, information about government assassination plots against Fidel Castro of Cuba (see, e.g., November 20, 1975, Early 1961-June 1965, March 1960-August 1960, and Early 1963); and that the FBI had conducted a counter-intelligence program (COINTELPRO) against Dr. Martin Luther King, Jr. and the Southern Christian Leadership Conference. Mafia boss Sam Giancana was slated to testify before the committee about his organization’s ties to the CIA, but before he could testify, he was murdered in his home—including having six bullet wounds in a circle around his mouth. Another committee witness, union leader Jimmy Hoffa, disappeared before he could testify. Hoffa’s body has never been found. Mafia hitman Johnny Roselli was murdered before he could testify before the committee: in September 1976, the Washington Post will print excerpts from Roselli’s last interview, with journalist Jack Anderson, before his death; Anderson will write, “When [Kennedy assassin Lee Harvey] Oswald was picked up, the underworld conspirators feared he would crack and disclose information that might lead to them. This almost certainly would have brought a massive US crackdown on the Mafia. So Jack Ruby was ordered to eliminate Oswald.” (Anderson’s contention has not been proven.) The murders of Giancana and Roselli, and the disappearance and apparent murder of Hoffa, will lead to an inconclusive investigation by the House of the assassinations of Kennedy and King. [Spartacus Educational, 12/18/2002]Leads to FISA - The findings of the Church Committee will inspire the passage of the Foreign Intelligence Surveillance Act (FISA) (see 1978), and the standing committees on intelligence in the House and Senate. [Assassination Archives and Research Center, 11/23/2002]Simultaneous Investigation in House - The Church Committee operates alongside another investigative body in the House of Representatives, the Pike Committee (see January 29, 1976). Church Committee Smeared After 9/11 - After the 9/11 attacks, conservative critics will once again bash the Church Committee; former Secretary of State James Baker will say within hours of the attacks that the Church report had caused the US to “unilaterally disarm in terms of our intelligence capabilities,” a sentiment echoed by the editorial writers of the Wall Street Journal, who will observe that the opening of the Church hearings was “the moment that our nation moved from an intelligence to anti-intelligence footing.” Perhaps the harshest criticism will come from conservative novelist and military historian Tom Clancy, who will say, “The CIA was gutted by people on the political left who don’t like intelligence operations. And as a result of that, as an indirect result of that, we’ve lost 5,000 citizens last week.” [Gerald K. Haines, 1/20/2003]

A team of young, mid-level CIA and DIA analysts, informally dubbed “Team A,” debates the neoconservative/hardline group of outside “analysts” known as “Team B” (see Early 1976) over the CIA’s estimates of Soviet military threats and intentions. The debate is a disaster for the CIA’s group. Team B uses its intellectual firepower and established reputations of members such as Richard Pipes and Paul Nitze to intimidate, overwhelm, and browbeat the younger, more inexperienced CIA analysts. “People like Nitze ate us for lunch,” recalls one member of Team A. “It was like putting Walt Whitman High versus the [NFL’s] Redskins. I watched poor GS-13s and GS-14s [middle-level analysts with modest experience and little real influence] subjected to ridicule by Pipes and Nitze. They were browbeating the poor analysts.” Howard Stoertz, the national intelligence officer who helped coordinate and guide Team A, will say in hindsight, “If I had appreciated the adversarial nature [of Team B], I would have wheeled up different guns.” Team A had prepared for a relatively congenial session of comparative analysis and lively discussion; Team B had prepared for war. Ideology Trumps Facts - Neither Stoertz nor anyone else in the CIA appreciated how thoroughly Team B would let ideology and personalities override fact and real data. While CIA analysts are aware of how political considerations can influence the agency’s findings, the foundation of everything they do is factual—every conclusion they draw is based on whatever facts they can glean, and they are leery of extrapolating too much from a factual set. Team A is wholly unprepared for B’s assault on their reliance on facts, a line of attack the CIA analysts find incomprehensible. “In other words,” author Craig Unger will write in 2007, “facts didn’t matter.” Pipes, the leader of Team B, has argued for years that attempting to accurately assess Soviet military strength is irrelevant. Pipes says that because it is irrefutable that the USSR intends to obliterate the US, the US must immediately begin preparing for an all-out nuclear showdown, regardless of the intelligence or the diplomatic efforts of both sides. Team B is part of that preparation. [Bulletin of Atomic Scientists, 4/1993; Unger, 2007, pp. 53-57] Intelligence expert John Prados, who will examine the contesting reports, later says that while the CIA analysts believe in “an objective discoverable truth,” the Team B analysts engaged in an “exercise of reasoning from conclusions” that they justify, not in factual, but in “moral and ideological terms.” According to Prados’s analysis, Team B had no real interest in finding the truth. Instead, they employed what he calls an adversarial process similar to that used in courts of law, where two sides present their arguments and a supposedly impartial judge chooses one over the other. Team B’s intent was, in essence, to present the two opposing arguments to Washington policy makers and have them, in author J. Peter Scoblic’s words, “choose whichever truth they found most convenient.” [Scoblic, 2008, pp. 98]Attacking the Intelligence Community - The first sentence of Team B’s report is a frontal assault on the US intelligence community. That community, the report says, had “substantially misperceived the motivations behind Soviet strategic programs, and thereby tended consistently to underestimate their intensity, scope, and implicit threat.” Team B writes that the intelligence community has failed to see—or deliberately refused to see—that the entire schema of detente and arms limitations negotiations are merely elements of the Soviet push for global domination. Fighting and Winning a Nuclear War - Team B writes that the Soviets have already achieved measurable superiority in nuclear weaponry and other military benchmarks, and will use those advantages to cow and coerce the West into doing its bidding. The Soviets worship military power “to an extent inconceivable to the average Westerner,” the report asserts. The entire Soviet plan, the report goes on to say, hinges on its willingness to fight a nuclear war, and its absolute belief that it can win such a war. Within ten years, Team B states, “the Soviets may well expect to achieve a degree of military superiority which would permit a dramatically more aggressive pursuit of their hegemonial objectives.” [Scoblic, 2008, pp. 94-95]Lack of Facts Merely Proof of Soviets' Success - One example that comes up during the debate is B’s assertion that the USSR has a top-secret nonacoustic antisubmarine system. While the CIA analysts struggle to point out that absolutely no evidence of this system exists, B members conclude that not only does the USSR have such a system, it has probably “deployed some operation nonacoustic systems and will deploy more in the next few years.” The absence of evidence merely proves how secretive the Soviets are, they argue. [Bulletin of Atomic Scientists, 4/1993; Unger, 2007, pp. 53-57] Anne Cahn, who will serve in the Arms Control and Disarmament Agency in the Carter administration, later says of this assertion, “They couldn’t say that the Soviets had acoustic means of picking up American submarines, because they couldn’t find it. So they said, well maybe they have a non-acoustic means of making our submarine fleet vulnerable. But there was no evidence that they had a non-acoustic system. They’re saying, ‘we can’t find evidence that they’re doing it the way that everyone thinks they’re doing it, so they must be doing it a different way. We don’t know what that different way is, but they must be doing it.‘… [The fact that the weapon doesn’t exist] doesn’t mean that it doesn’t exist. It just means that we haven’t found it yet.” Cahn will give another example: “I mean, they looked at radars out in Krasnoyarsk and said, ‘This is a laser beam weapon,’ when in fact it was nothing of the sort.… And if you go through most of Team B’s specific allegations about weapons systems, and you just examine them one by one, they were all wrong.… I don’t believe anything in Team B was really true.” [Bulletin of Atomic Scientists, 4/1993; Common Dreams (.org), 12/7/2004; BBC, 1/14/2005]Soviet Strike Capabilities Grossly Exaggerated - Team B also hammers home warnings about how dangerous the Soviets’ Backfire bomber is. Later—too late for Team A—the Team B contentions about the Backfire’s range and refueling capability are proven to be grossly overestimated; it is later shown that the USSR has less than half the number of Backfires that B members loudly assert exist (500 in Team B’s estimation, 235 in reality). B’s assertions of how effectively the Soviets could strike at US missile silos are similarly exaggerated, and based on flawed assessment techniques long rejected by the CIA. The only hard evidence Team B produces to back their assertions is the official Soviet training manual, which claims that their air-defense system is fully integrated and functions flawlessly. The B analysts even assert, without evidence, that the Soviets have successfully tested laser and charged particle beam (CPB) weapons. [Bulletin of Atomic Scientists, 4/1993; Quarterly Journal of Speech, 5/2006 ] (The facility at Semipalatansk that is supposedly testing these laser weapons for deployment is in reality a test site for nuclear-powered rocket engines.) [Scoblic, 2008, pp. 96]Fundamental Contradiction - One befuddling conclusion of Team B concerns the Soviets’ ability to continue building new and expensive weapons. While B acknowledges “that the Soviet Union is in severe decline,” paradoxically, its members argue that the threat from the USSR is imminent and will grow ever more so because it is a wealthy country with “a large and expanding Gross National Product.” Allegations 'Complete Fiction' - Cahn will say of Team B’s arguments, “All of it was fantasy.… [I]f you go through most of Team B’s specific allegations about weapons systems, and you just examine them one by one, they were all wrong.” The CIA lambasts Team B’s report as “complete fiction.” CIA director George H. W. Bush says that B’s approach “lends itself to manipulation for purposes other than estimative accuracy.” His successor, Admiral Stansfield Turner, will come to the same conclusion, saying, “Team B was composed of outsiders with a right-wing ideological bent. The intention was to promote competition by polarizing the teams. It failed. The CIA teams, knowing that the outsiders on B would take extreme views, tended to do the same in self-defense. When B felt frustrated over its inability to prevail, one of its members leaked much of the secret material of the proceedings to the press” (see Late November, 1976). Former CIA deputy director Ray Cline says Team B had subverted the National Intelligence Estimate on the USSR by employing “a kangaroo court of outside critics all picked from one point of view.” Secretary of State Henry Kissinger says that B’s only purpose is to subvert detente and sabotage a new arms limitation treaty between the US and the Soviet Union. [Bulletin of Atomic Scientists, 4/1993; Common Dreams (.org), 12/7/2004; BBC, 1/14/2005; Quarterly Journal of Speech, 5/2006 ; Unger, 2007, pp. 53-57]Costs of Rearmament - In 1993, after reviewing the original Team B documents, Cahn will reflect on the effect of the B exercise: “For more than a third of a century, assertions of Soviet superiority created calls for the United States to ‘rearm.’ In the 1980s, the call was heeded so thoroughly that the United States embarked on a trillion-dollar defense buildup. As a result, the country neglected its schools, cities, roads and bridges, and health care system. From the world’s greatest creditor nation, the United States became the world’s greatest debtor—in order to pay for arms to counter the threat of a nation that was collapsing.” [Bulletin of Atomic Scientists, 4/1993] Former Senator Gary Hart (D-CO) will agree: “The Pro-B Team leak and public attack on the conclusions of the NIE represent but one element in a series of leaks and other statements which have been aimed as fostering a ‘worst case’ view for the public of the Soviet threat. In turn, this view of the Soviet threat is used to justify new weapons systems.” [Quarterly Journal of Speech, 5/2006 ]

Although the entire “Team B” intelligence analysis experiment (see Early 1976, November 1976, and November 1976) is supposed to be classified and secret, the team’s neoconservatives launch what author Craig Unger will call “a massive campaign to inflame fears of the red menace in both the general population and throughout the [foreign] policy community—thanks to strategically placed leaks to the Boston Globe and later to the New York Times.” Times reporter David Binder later says that Team B leader Richard Pipes is “jubilant” over “pok[ing] holes at the [CIA]‘s analysis” of the Soviet threat. Team B member John Vogt calls the exercise “an opportunity to even up some scores with the CIA.” [Unger, 2007, pp. 57] Team member George Keegan tells reporters, “I am unaware of a single important category in which the Soviets have not established a significant lead over the United States… [This] grave imbalance in favor of Soviet military capability had developed out of a failure over the last 15 years to adjust American strategic thinking to Soviet strategic thinking, and out of the failure of the leadership of the American intelligence community to ‘perceive the reality’ of the Soviet military buildup.” Keegan’s colleague William van Cleave agrees, saying that “overall strategic superiority exists today for the Soviet Union,” and adds, “I think it’s getting to the point that, if we can make a trade with the Soviet Union of defense establishments, I’d be heartily in favor of it.” [Scoblic, 2008, pp. 95]Used to Escalate Defense Spending - The experiment is far more than a dry, intellectual exercise or a chance for academics to score points against the CIA. Melvin Goodman, who heads the CIA’s Office of Soviet Affairs, will observe in 2004: “[Defense Secretary Donald] Rumsfeld won that very intense, intense political battle that was waged in Washington in 1975 and 1976. Now, as part of that battle, Rumsfeld and others, people such as Paul Wolfowitz, wanted to get into the CIA. And their mission was to create a much more severe view of the Soviet Union, Soviet intentions, Soviet views about fighting and winning a nuclear war.” Even though Wolfowitz’s and Rumsfeld’s assertions of powerful new Soviet WMD programs are completely wrong, they use the charges to successfully push for huge escalations in military spending, a process that continues through the Ford and Reagan administrations (see 1976) [Common Dreams (.org), 12/7/2004; BBC, 1/14/2005] , and resurface in the two Bush administrations. “Finally,” Unger will write, “a band of Cold Warriors and neocon ideologues had successfully insinuated themselves in the nation’s multibillion-dollar intelligence apparatus and had managed to politicize intelligence in an effort to implement new foreign policy.” [Unger, 2007, pp. 57-58]Kicking Over the Chessboard - Former senior CIA official Richard Lehman later says that Team B members “were leaking all over the place… putting together this inflammatory document.” Author and university professor Gordon R. Mitchell will write that B’s practice of “strategically leaking incendiary bits of intelligence to journalists, before final judgments were reached in the competitive intelligence exercise,” was another method for Team B members to promulgate their arguments without actually proving any of their points. Instead of participating in the debate, they abandoned the strictures of the exercise and leaked their unsubstantiated findings to the press to “win” the argument. [Quarterly Journal of Speech, 5/2006 ]'One Long Air Raid Siren' - In 2002, defense policy reporter Fred Kaplan will sardonically label Team B the “Rumsfeld Intelligence Agency,” and write: “It was sold as an ‘exercise’ in intelligence analysis, an interesting competition—Team A (the CIA) and Team B (the critics). Yet once allowed the institutional footing, the Team B players presented their conclusions—and leaked them to friendly reporters—as the truth,” a truth, Team B alleges, the pro-detente Ford administration intends to conceal. Kaplan will continue, “The Team B report read like one long air-raid siren: The Soviets were spending practically all their GNP on the military; they were perfecting charged particle beams that could knock our warheads out of the sky; their express policy and practical goal was to fight and win a nuclear war.” Team B is flatly wrong across the board, but it still has a powerful impact on the foreign policy of the Ford administration, and gives the neoconservatives and hardliners who oppose arms control and detente a rallying point. Author Barry Werth will observe that Rumsfeld and his ideological and bureaucratic ally, White House chief of staff Dick Cheney “drove the SALT II negotiations into the sand at the Pentagon and the White House.” Ford’s primary opponent, Ronald Reagan, and the neocons’ public spokesman, Senator Henry Jackson, pillory Ford for being soft on Communism and the Soviet Union. Ford stops talking about detente with the Soviets, and breaks off discussions with the Soviets over limiting nuclear weapons. Through Team B, Rumsfeld and the neocons succeed in stalling the incipient thaw in US-Soviet relations and in weakening Ford as a presidential candidate. [Werth, 2006, pp. 341]

After CIA Director George H. W. Bush meets with the New York Times’s David Binder, the Times publishes a front-page story about the “Team B” analysis experiment (see November 1976). Up till now, Bush has been foursquare against leaking information to the press, especially classified information such as the Team B affair. Dr. Anne Cahn, who will serve in President Carter’s Arms Control and Disarmament Agency, later writes that Bush’s sudden about-face may be sparked in part by President-elect Carter’s refusal to assure Bush that he would continue as CIA director in the new administration. Bush soon appears on NBC’s Meet the Press, and because of Bush’s media leaks and other Team B press revelations (see Late November, 1976), three separate Congressional committees announce their intention to hold hearings on the entire exercise. [Bulletin of Atomic Scientists, 4/1993]

In his first interview session with former President Richard Nixon about Watergate (see April 13-15, 1977), David Frost moves from the erased Watergate tape (see November 21, 1973) to Nixon’s damning conversation with Charles Colson about “stonewalling” the Watergate investigation. This time around, Frost is far more prepared and ready to deal with Nixon’s tactics of obfuscation and misdirection than in earlier interviews (see April 6, 1977). Surprise Information - Nixon is unaware that Frost knows about his conversation that same day with Colson (see June 20, 1972). Along with what is known about his conversation with Haldeman, the Colson conversation puts Nixon squarely in the midst of the conspiracy at its outset. More important than Frost’s command of the facts is Frost’s springing of a “surprise card” (Frost researcher James Reston Jr.‘s words) on Nixon at the beginning of the Watergate sessions. Nixon obviously must contend with the questions of what else Frost knows, and how he would ask about it. As Frost details excerpts from the Colson conversation, about “stonewalling” and “hav[ing] our people delay, avoiding depositions,” Reston watches Nixon on the monitor. Reston will later recall: “His jawline seemed to elongate. The corners of his mouth turned down. His eyes seemed more liquid. One could almost see the complicated dials in his head turning feverishly. It was a marvelously expressive face. The range of movement both within the contours of the visage and with the hands was enormous.” Frost concludes with the question, “Now, somewhere you were pretty well informed by this conversation, weren’t you?” After some fumbling and half-hearted admissions of some knowledge, Nixon begins justifying his actions in the conspiracy: “My motive was not to cover up a criminal action, but to be sure that as any slip over—or should I say slop over, a better word—any slop over in a way that would damage innocent people or blow it into political proportions.” [Reston, 2007, pp. 124-126]Pinning Nixon down on CIA Interference - Frost asks about the conversations of June 23 (see June 23, 1972), when Nixon told his aides to have the CIA interfere with the FBI’s investigation of the burglary. Nixon tries dodging the point, emphasizing how busy he was with other matters that day and quibbling about the definition of the phrase “cover-up,” but finally says that he had no criminal motive in ordering the CIA to stop the FBI from investigating the matter of the Mexican checks found in Watergate burglar Bernard Barker’s bank accounts. He was merely engaged in political containment, he says, and besides, two weeks later, the FBI traced the checks to a Mexican bank anyway (see Before April 7, 1972 and August 1-2, 1972). Nixon emphasizes his instructions to then-FBI director L. Patrick Gray to move forward on the investigation (see July 6, 1972). (Later, Nixon staff member Jack Brennan will admit that they had almost convinced Nixon to admit to the illegality of the June 23 orders, but Nixon had demurred.) 'You Joined a Conspiracy that You Never Left' - It now falls to Frost to confront Nixon with the strictures of the law and the evidence that he had broken those laws. Frost says, “But surely, in all you’ve just said, you have proved exactly that that was the case, that there was a cover-up of criminal activity because you’ve already said, and the record shows you knew, that Hunt and Liddy [E. Howard Hunt and G. Gordon Liddy, the leaders of Nixon’s “Plumbers”] were involved… you knew that, in fact, criminals would be protected.” Nixon protests, “Now just a moment,” but Frost says, “Period.” Frost lectures Nixon on obstruction of justice, saying: “The law states that when intent and foreseeable consequences are sufficient, motive is completely irrelevant.… If I try to rob a bank and fail, that’s no defense. I still tried to rob a bank. I would say you tried to obstruct justice and succeeded in that period” between June 23 and July 6. Nixon retorts that he does not believe Frost knows much about the details of the obstruction of justice statutes, but fails to move Frost, who has been carefully instructed in the obstruction statutes all week. Frost eventually says: “Now, after the Gray conversation, the cover-up went on. You would say that you were not aware of it. I was arguing that you were part of it as a result of the June 23 conversation.” Nixon repeats, “You’re gonna say that I was a part of it as a result of the June 23 conversation?” Reston later writes, “It was a crucial moment, a moment that took considerable courage for David Frost.” Frost replies: “Yes.… I would have said that you joined a conspiracy that you never left.” “Then we totally disagree on that,” Nixon retorts. Reston later writes: “No journalist in America, I concluded, would have had the courage of Frost in that vital moment. But therein lay the failing of American journalism. For Frost here was an advocate. He was far beyond the narrow American definition of ‘objective journalism.’” [Time, 5/9/1977; Reston, 2007, pp. 124-126]

The CIA begins covert action against the Communist government in Afghanistan, which is closely tied to the Soviet Union. Some time this year, the CIA begins training militants in Pakistan and beaming radio propaganda into Afghanistan. By April 1979, US officials are meeting with opponents of the Afghan government to determine their needs. [Blum, 1995, pp. 344] Robert Gates, who will become CIA Director in the early 1990s, will later recall that in a meeting on March 30, 1979, Under Secretary of Defense Walter Slocumbe wonders aloud whether there is “value in keeping the Afghan insurgency going, ‘sucking the Soviets into a Vietnamese quagmire.’” [Gates, 1996, pp. 145] In March 1979, there is a major revolt in Herat province, and in June and August there are large scale army mutinies. [Cooley, 2002, pp. 5] President Carter will formally approve covert aid to opponents of the government in July (see July 3, 1979), which will result in a Russian invasion in December (see December 8, 1979).

Kamal Adham. [Source: Adham Center]Beginning in 1978, a group of foreign investors attempt to buy First American Bankshares, the biggest bank in the Washington, D.C., area. This group is fronted by Kamal Adham, the longtime Saudi intelligence minister until 1979. In 1981, the Federal Reserve asks the CIA for information about the investors, but the CIA holds back everything they know, including the obvious fact that Adham was intelligence minister. As a result, the sale goes through in 1982. It turns outs that Adham and his group were secretly acting on behalf of the criminal Bank of Credit and Commerce International (BCCI), and BCCI takes over the bank. [Washington Post, 7/30/1991; US Congress, Senate, Committee on Foreign Relations, 12/1992] Time magazine will later report that “the CIA kept some accounts in First American Bank, BCCI’s Washington arm.” But additionally, “Government investigators now have proof that First American had long been the CIA’s principal banker. Some of the more than 50 agency accounts uncovered at the bank date back to the 1950s. BCCI owned the CIA’s bank for a decade.” [Time, 3/9/1992] The CIA soon learns that BCCI secretly controls the bank, if the CIA didn’t already know this from the very beginning. By 1985, the CIA will secretly inform the Treasury Department on the bank’s control by BCCI, which would be illegal. But no action is taken then or later, until BCCI is shut down. Sen. John Kerry’s BCCI investigation will later conclude, “even when the CIA knew that BCCI was as an institution a fundamentally corrupt criminal enterprise, it used both BCCI and First American, BCCI’s secretly held US subsidiary, for CIA operations. In the latter case, some First American officials actually knew of this use.” [US Congress, Senate, Committee on Foreign Relations, 12/1992]

President Jimmy Carter. [Source: The Sietch.org]President Jimmy Carter issues Executive Order 12036, in effect banning domestic surveillance by the CIA and other US intelligence agencies. Carter writes, “No agency within the Intelligence Community shall engage in any electronic surveillance directed against a United States person abroad or designed to intercept a communication sent from, or intended for receipt within, the United States except as permitted by the procedures established pursuant to section 2-201.” That exception allows for the surveillance of US citizens in the case of acquiring “[i]nformation about the capabilities, intentions and
activities of foreign powers, organizations, or persons and their agents…. The measures employed to acquire such information should be responsive to legitimate governmental needs and must be conducted in a manner that preserves and respects established concepts of privacy and civil liberties.” The order also flatly prohibits any assassinations by government officials, saying, “No person employed by or acting on behalf of the United States Government shall engage in, or conspire to engage in, assassination.… No agency of the Intelligence Community shall request or otherwise encourage, directly or indirectly,
any person, organization, or government agency to undertake activities forbidden by this order or by applicable law.” [White House, 1/24/1978]

David Blee, head of counterintelligence at the CIA, asks the NSA, FBI, and allied representatives to form a committee to evaluate the potential for a signals intelligence project codenamed VENONA and directed against the Soviet Union over the next two years. Howard W. Kulp and Mildred Hayes, who will go on to head the VENONA unit in later years, represent the NSA on the committee. [Center for Cryptologic History, 1/1/2001 ]

After the Shah Mohammad Reza Pahlavi is deposed in Iran and Ayatollah Khomeini takes over as Iran’s new leader in February 1979, the US is interested in continuing to work with the Iranian government. At first the US is taken aback by the new fundamentalist Islamic government, and National Security Adviser Zbigniew Brzezinski contemplates fomenting a military coup to stop Khomeini. But Khomeini is fiercely anti-communist, and Brzezinski soon decides that Iran’s new government can become part of an effective anti-Soviet alliance he calls the “arc of crisis’ (see November 1978-February 1979). The US embassy in Teheran, Iran, remains open, and more US officials come to Iran and begin tentative talks there. [Dreyfuss, 2005, pp. 236-243] The CIA in particular begins secretly collaborating with Iranian intelligence, providing information about the Soviet Union, Afghanistan, and Iraq. The CIA and Iran both covertly work to destabilize the pro-Soviet government in Afghanistan. [Dreyfuss, 2005, pp. 264-265] In early November 1979, Brzezinski secretly meets with Iranian Prime Minister Mehdi Bazargan, as well as Iran’s foreign minister and defense minister, in Algiers, Algeria. But shortly before the meeting, the US agrees to allow the Shah, dying with cancer, to come to the US for medical treatment. Khomeini is enraged, and on November 4, just three days after the Algeria meeting begins, Khomeini arranges for students to take over the US embassy in Teheran and seize hostages. This realigns political forces in Iran and allows Khomeini to sideline Bazargan and other others meeting in Algeria, rendering the negotiations there moot. Brzezinski’s attempts to create a de facto alliance with Iran collapse. The US hostages will be held for over a year before finally being freed. [Dreyfuss, 2005, pp. 240-243]

As the US mobilizes for covert war in Afghanistan (see 1978 and July 3, 1979), a CIA special envoy meets Afghan mujaheddin leaders at Peshawar, Pakistan, near the border to Afghanistan. All of them have been carefully selected by the Pakistani ISI and do not represent a broad spectrum of the resistance movement. One of them is Gulbuddin Hekmatyar, a drug dealer with little support in Afghanistan, but who is loyal to the ISI. The US will begin working with Hekmatyar and over the next 10 years over half of all US aid to the mujaheddin will go to his faction (see 1983). Hekmatyar is already known as brutal, corrupt, and incompetent. [McCoy, 2003, pp. 475] His extreme ruthlessness, for instance, his reputation for skinning prisoners alive, is considered a plus, as it is thought he will use that ruthlessness to kill Russians. [Dreyfuss, 2005, pp. 267-268]

Soviet tanks entering Afghanistan in late 1979. [Source: Banded Artists Productions]The Soviet Union invades Afghanistan. The Russians were initially invited in by the Afghan government to deal with rising instability and army mutinies, and they start crossing the border on December 8. But on December 26, Russian troops storm the presidential palace, kill the country’s leader, Haizullah Amin, and the invitation turns into an invasion. [Blum, 1995, pp. 342] Later declassified high-level Russian documents will show that the Russian leadership believed that Amin, who took power in a violent coup from another pro-Soviet leader two months before, had secret contacts with the US embassy and was probably a US agent. Further, one document from this month claims that “the right wing Muslim opposition” has “practically established their control in many provinces… using foreign support.” [Cooley, 2002, pp. 8] It has been commonly believed that the invasion was unprovoked, but the Russians will later be proven largely correct. In a 1998 interview, Zbigniew Brzezinski, President Jimmy Carter’s National Security Adviser, will reveal that earlier in the year Carter authorized the CIA to destabilize the government, provoking the Russians to invade (see July 3, 1979). [Le Nouvel Observateur (Paris), 1/1998; Mirror, 1/29/2002] Further, CIA covert action in the country actually began in 1978 (see 1978), if not earlier (see 1973-1979). The US and Saudi Arabia will give a huge amount of money (estimates range up to $40 billion total for the war) to support the mujaheddin guerrilla fighters opposing the Russians, and a decade-long war will ensue. [Nation, 2/15/1999]

Some fighters opposing the Soviets in Afghanistan begin training in the US. According to journalist John Cooley, the training is done by Navy Seals and Green Beret officers who have taken draconian secrecy oaths. Key Pakistani officers are trained, as well as some senior Afghan mujaheddin. Much of the training takes place in Camp Peary, near Williamsburg, Virginia, which is said to be the CIA’s main location for training spies and assets. Other training takes place at Fort Bragg, North Carolina, Harvey Point, North Carolina, and Fort A. P. Hill, Virginia. Subjects are trained in how to detect explosives, surveillance, how to recruit new agents, how to run paramilitary operations, and more. They are taught to use many different weapons as well, including remote-controlled mines and bombs, and sophisticated timers and explosives. Cooley claims that “apparently [no] Arab or other foreign volunteers” are trained in the US. [Cooley, 2002, pp. 70-72] However, in the late 1980s, US consular official Michael Springmann will notice fighters from many Middle Eastern nations are getting US visas, apparently to train in the US for the Afghan war (see September 1987-March 1989). Additionally, more training takes place in other countries. For instance, Cooley will note, “By the end of 1980, US military trainers were sent to Egypt to impart the skills of the US Special Forces to those Egyptians who would, in turn, pass on the training to the Egyptian volunteers flying to the aid of the mujaheddin in Afghanistan.” Cooley will further note, “Time and time again, these same techniques reappear among the Islamist insurgents in Upper Egypt and Algeria, since the ‘Afghani’ Arab veterans began returning there in the late 1980s and early 1990s.” [Cooley, 2002, pp. 70-72] It is not known how long these training programs continue.

Fearing a diplomatic incident, CIA and other US agents rarely venture into Afghanistan. Generally speaking, soldiers from the British elite Special Air Service (SAS) work with and train the mujaheddin instead. The SAS provides weapons training in Afghanistan until 1982 when Russian soldiers find the passports of two British instructors in a training camp. After that, mujaheddin are trained in secret camps in remote parts of Scotland. When the US decides to supply Stinger missiles to the mujaheddin in 1986, it is the SAS who provide the training in how to use them (see September 1986). But the SAS is taking orders from the CIA. The CIA also indirectly gives weapons to Osama bin Laden and other mujaheddin leaders. One former US intelligence official will say in 1999, “[US agents] armed [bin Laden’s] men by letting him pay rock-bottom prices for basic weapons.” But this person notes the relationship will later prove to be embarrassing to bin Laden and the CIA. “Of course it’s not something they want to talk about.” [Reeve, 1999, pp. 168]

From 1980 to 1989, about $600 million is passed through Osama bin Laden’s charity fronts, according to Michael Scheuer, head of the CIA’s first bin Laden unit. Most of it goes through the charity front Maktab al-Khidamat (MAK), also known as Al-Kifah. The money generally comes from donors in Saudi Arabia and the Persian Gulf, and is used to arm and supply the mujaheddin fighting in Afghanistan. Mohammad Yousaf, a high ranking ISI official, will later say, “It was largely Arab money that saved the system,” since so much of the aid given by the CIA and Saudi Arabia was siphoned away before it got to Afghanistan. “By this I mean cash from rich individuals or private organizations in the Arab world, not Saudi government funds. Without those extra millions the flow of arms actually getting to the mujaheddin would have been cut to a trickle.” [Dreyfuss, 2005, pp. 279-280] Future CIA Director Robert Gates will later claim that in 1985 and 1986, the CIA became aware of Arabs assisting and fighting with the Afghan mujaheddin, and the CIA “examined ways to increase their participation, perhaps in the form of some sort of ‘international brigade,’ but nothing came of it.” [Coll, 2004, pp. 146] However, a CIA official involved in the Afghan war will claim that the CIA directly funded MAK (see 1984 and After).

Israel secretly changes its policy towards Iran, and now seeks a level of rapprochement with that nation. Israeli defense minister Ariel Sharon proposes that President Jimmy Carter, who is struggling to find a diplomatic means to get the 52 American hostages released, begin secretly selling US arms to Iran. Carter angrily refuses. But unbeknownst to Carter, Israel will begin selling its own arms to Iran shortly thereafter. Interestingly, some officials in the US State Department and the CIA know of the Israeli arms sales to Iran. [New Yorker, 11/2/1992]

Nabih Berri in 1982. [Source: Reza / Corbis]Nabih Berri takes over the Amal Militia, a Shi’a Lebanese paramilitary organization, and tries to build it up as a power base for himself. Although not a fundamentalist Muslim, Berri allies himself with the new regime in Iran and Hezbollah, a fundamentalist Lebanese Shi’a party backed by Iran. Berri also manages to convince Syrian authorities that he will represent their interests in Lebanon and comes to a similar arrangement with the Ba’ath party in Iraq. This is a difficult balance for Berri to keep, as journalists Joe and Susan Trento will later point out, “If he displeased the Iranian mullahs who controlled the supply of money to Hezbollah in Lebanon, he would lose his grip on power.” Former intelligence officer Michael Pilgrim will comment, “Berri was targeted for CIA recruitment and so were members of his militia… I think it’s safe to say we financed his early trips to Iran.” He also commences relationships with the Drug Enforcement Agency and Defense Intelligence Agency. Unsurprisingly, some of the consequences of this are bad for the US, and the Trentos will comment: “The relationship would end in a series of deadly disasters for members of our armed services and the CIA. According to US intelligence officials who served in Lebanon at the time, Berri kept the peace with [Iran] and the Shi’a by allowing them to attack Westerners in his Amal-controlled territory. To prove his loyalty to the Shi’a and keep the alliance that was essential to his power base, he failed to pass on intelligence to the United States.” Based on interviews with former intelligence officers and associates of Berri, the Trentos will conclude that he facilitated attacks on the US by Hezbollah by allowing their operatives to pass Amal checkpoints without warning the US, for example before attacks on the US embassy and Marine barracks in 1983 in which hundreds die (see April 18-October 23, 1983). [Trento and Trento, 2006, pp. 74-77]

Robert Sensi’s membership card in Republicans Abroad. [Source: Larry J. Kolb]According to a later account by Robert Sensi, a young CIA agent with excellent contacts among prominent Arabs, the Republican National Committee opens what Sensi calls “a secret channel to Iran.” Sensi is not only alluding to the secret plans for the US to sells arms to Iran, which is just developing (see Early 1980), but to the “October Surprise” of the November 1980 US presidential elections (see October 1980). Sensi will bring the matter up to author and fellow CIA agent Larry Kolb in a Washington, DC, hotel bar in 1986, but will not go into detail. Sensi will note that CIA Director William Casey has been involved in the US’s secret dealings with Iran since the outset, as has Robert Carter, the deputy director of Ronald Reagan’s presidential campaign. Sensi will say that Casey, Carter, and the other participants are using the overseas political organization Republicans Abroad as cover for more covert activities. The organization is “a great drawing card,” according to Sensi, who is a member. “It gives us access to embassies and a lot of people we would have had a hard time getting to without the cachet of representing the ruling party in the United States.” Writing in 2007, Kolb will reflect on the Republican Party’s “own in-house team of covert operatives, as capable of conducting espionage and sabotage for the Republican Party as for the CIA. It seemed the Republicans were still doing what they had been caught doing during Watergate. Spying on and sabotaging the Democrats. Ratf_cking, as the Republican operatives called it (see October 7, 1972). Coming just a few years after the Watergate national Passion Play and all it had put our country through, this seemed flagrant and foul, like sleaze squared. And like politics-as-usual.” [Kolb, 2007, pp. 28-29]

Much of the billions of dollars in aid from Saudi Arabia and the CIA to the Afghan mujaheddin actually gets siphoned off by the Pakistani ISI. Melvin Goodman, a CIA analyst in the 1980s, will later say, “They were funding the wrong groups, and had little idea where the money was going or how it was being spent.” Sarkis Soghanalian, a middleman profiting from the aid, will later say, “The US did not want to get its hands dirty. So the Saudis’ money and the US money was handled by the ISI. I can tell you that more than three quarters of the money was skimmed off the top. What went to buy weapons for the Afghan fighters was peanuts.” Sognhanalian claims that most of the money went through various accounts held at the notoriously corrupt BCCI bank, then was distributed to the ISI and the A. Q. Khan nuclear network. [Trento, 2005, pp. 318] Robert Crowley, a CIA associate director from the 1960s until the 1980s, will also refer to the aid money going to Khan’s network, commenting, “Unfortunately, the Pakistanis knew exactly where their cut of the money was to go.” An early 1990s congressional investigation led by Sen. John Kerry (D-MA) will also come to the same conclusion. [Trento, 2005, pp. 314, 384]

In 1991, the Guardian will report that for at least the past ten years, the CIA has secretly had nearly 500 Britons on its payroll and has been paying them through accounts at the criminal BCCI bank. Some are in senior positions, although no specific individuals are named. Some of these informants have told the CIA details about British arms sales and other overseas business deals, sometimes before the contracts are finalized. According to intelligence sources, the informants include: 124 people in government or politics. 53 in commerce, industry, and banking. 75 in academia. 24 scientists. 124 in communications. 90 in the media. [Guardian, 7/26/1991]There will be no report of these informant contacts stopping after the BCCI scandal in 1991.

Norman Bailey, a member of the National Security Council (NSC) whose specialty is monitoring terrorism by tracking finances, will later reveal that in the early 1980s the NSC learns that BCCI is not just a bank but is engaged in widespread criminal activity. “We were aware that BCCI was involved in drug-money transactions,” he will later say. “We were also aware that BCCI was involved with terrorists, technology transfers—including the unapproved transfer of US technology to the Soviet bloc—weapons dealing, the manipulation of financial markets, and other activities.” The main source for the NSC about this are reports from the CIA. From 1981 on, the NSC learns of BCCI’s role in illegal technology deals for Pakistan, Iraq, Libya, Iran, and other countries. A clear picture has emerged by the start of 1984. But neither the CIA nor the NSC take any action against the bank. [Beaty and Gwynne, 1993, pp. 291, 315]

The Committee for a Free Afghanistan (CFA) is established to support the mujaheddin in Afghanistan in their struggle against the Soviet Union. Ostensibly, it is meant to support the Afghanis by non-violent means, such as by providing medicine and seeds, as well as arranging publicity. [Los Angeles Times, 5/12/1986] However, it will be alleged that the CFA is “widely known as cover for the CIA.” [Tass, 6/20/1986; Business Line, 4/27/2000] The person responsible for coordinating the aid in Pakistan is CFA Field Director Theodore Mataxis, who makes seven trips lasting between one and three months each to Peshawar, a staging point on the Pakistani side of the border. Mataxis, who reached the rank of Brigadier General in the US army before retiring, is an expert in guerrilla warfare, having fought in World War II, Korea, and Vietnam. He also supported Iran-based Kurdish irregulars in Iraq in 1968-70. [Grau and Gress, 2002, pp. xi-xv] Mataxis helps train the mujaheddin. He is also aware of US arms shipments to fighters, some of which are diverted by “the group that was to become the Taliban… for their own purposes.” [The Pilot (Southern Pines), 11/23/2001]

Donald Gregg. [Source: Spartacus Educational]Vice President George H. W. Bush asks CIA agent and National Security Council official Donald Gregg to serve as his national security and foreign policy adviser. Gregg agrees, and retires from the CIA. Gregg will work closely with Bush and former CIA agent Felix Rodriguez to help put together a covert operation to supply the Nicaraguan Contras with arms, cash, and supplies. [Spartacus Schoolnet, 12/28/2007]

Alexander Haig. [Source: Wally McNamee / Corbis]The newly installed Reagan administration publicly maintains a hard line against Iran, a nation vastly unpopular among Americans who have not forgiven that nation for holding 52 of its citizens hostage for well over a year and murdering a CIA station chief. (Years later, Vice President Bush will call it “an understandable animosity, a hatred, really,” and add, “I feel that way myself.”) President Reagan’s secretary of state, Alexander Haig, says bluntly, “Let me state categorically today there will be no military equipment provided to the government of Iran.” Yet within weeks of taking office, Reagan officials will begin putting together a continuing package of secret arms sales to Iran. [New Yorker, 11/2/1992]

Alexandre de Marenches, head of French intelligence and leader of the Safari Club, a secret cabal of intelligence agencies, meets President Reagan at the White House shortly after Reagan’s inauguration. De Marenches proposes a joint French-American-ISI operation to counter the Soviets in Afghanistan, and dubs it Operation Mosquito. As de Marenches will later explain in his memoirs, he suggests making fake Russian newspapers with articles designed to demoralize Soviet troops, and other propaganda. He also suggests the US take drugs seized by the Drug Enforcement Administration (DEA) and other agencies that would normally be destroyed and secretly supply them to Soviet soldiers fighting in Afghanistan instead. According to de Marenches, the idea is ultimately rejected because of fear of media leaks. But in fact, fake issues of the Soviet army newspaper later do appear in Kabul, Afghanistan. And large qualities of hashish, opium, and heroin are made available to Soviet soldiers, resulting in widespread addiction. Such addiction to local drugs would have taken place to some degree in any case, but intriguingly, some quantities of cocaine also appear in Afghanistan. At the time, cocaine is only grown in South America. A team of Russian military historians will later write a candid book on the Afghan war and one will say, “there certainly was circumstantial evidence for some kind of systematic program” to addict Soviet soldiers. [Cooley, 2002, pp. 106-108] In 1982, a secret memo will exempt the CIA from reporting on drug smuggling conducted by CIA officers or assets (see February 11, 1982). Mathea Falco, head of the State Department’s International Narcotics Control program, will later allege that the CIA and ISI worked together to encourage the mujaheddin to addict Soviet troops. And a book cowritten by two Time magazine reporters will allege that “a few American intelligence operatives were deeply emeshed in the drug trade” during the war. [Scott, 2007, pp. 124-125]

Pakistani dictator Muhammad Zia ul-Haq orders nuclear scientist A. Q. Khan to prepare for a cold test of a nuclear weapon. The instruction is given shortly after Khan tells Zia that he has managed to enrich uranium to weapons grade (see (March-April 1981)), and after Zia visits the facility where Khan works, re-naming it after him. The CIA will soon learn of this instruction. [Levy and Scott-Clark, 2007, pp. 84-85, 90]

Pope John Paul II visits his would-be assassin, Mehmet Ali Agca, in prison, in 1983. [Source: CBS News]Columnist and Reagan foreign policy adviser Michael Ledeen, an American neoconservative with murky ties to both US and Italian intelligence (see October 1980), plays a key role in a disinformation campaign that attempts to blame Eastern European Communists for an attempt on Pope John Paul II’s life. A Turkish fascist, Mehmet Ali Agca, shot and nearly killed the Pope in May 1981. Shortly thereafter, Acga claimed to have taken his orders from the Soviet KGB through Bulgaria’s Secret Service. The story makes for fine Cold War propaganda, and Ledeen is one of its most relentless proponents, promoting it in news articles and television interviews around the world. But the story is most likely not true. “It just doesn’t pass the giggle test,” recalls Frank Brodhead, author of a book on the subject. Agca was a member of a far-right Turkish terrorist group called the Gray Wolves, Brodhead later says. “[I]t seemed illogical that a Turkish fascist would work with Bulgarian Communists.” Although Agca himself originated the claim, he is anything but reliable, widely considered a pathological liar by most involved in his case, and suffering from delusions of grandeur. (He often claims to be the reincarnation of Jesus Christ.) Eight men will be tried in Italian courts for their connections to the Bulgarian allegations, and all eight will be acquitted for lack of evidence. Agca will damage the case by constantly changing his story. At one point, Agca will say he made the Bulgarian accusation at the behest of Francesco Pazienza, a member of Propaganda Due (P-2), the shadowy right-wing organization. Agca says Pazienza offered him freedom in exchange for the claim. Agca will change that story as well. Washington Post reporter Michael Dobbs, who originally believes the Bulgarian story, will later come to believe that Agca’s tale “was invented by Agca with the hope of winning his release from prison… He was aided and abetted in this scheme by right-wing conspiracy theorists in the United States and William Casey’s Central Intelligence Agency, which became a victim of its own disinformation campaign.” Pazienza will later claim that the entire idea of a “Bulgarian connection” originated with Ledeen, a charge that Ledeen will angrily deny. [Unger, 2007, pp. 388]

West Point graduate Rolf Mowatt-Larssen joins the CIA. He will go on to hold a number of senior positions at the agency, including deputy associate director of central intelligence for military support, chief of the Weapons of Mass Destruction Department, Counterterrorism Center, and finally chief of the Europe division in the directorate of operations. His overseas assignments will include Moscow, Stockholm, Athens, Zurich, and Oslo. Mowatt-Larssen will also receive a number of awards, including the CIA Director’s Award, Distinguished Career Intelligence Medal, Commendation Medal, and Secretary of Defense Civilian Distinguished Service Medal. [US Department of Energy, 12/2/2008]

Afghan opium production rises from 250 tons in 1982 to 2,000 tons in 1991, coinciding with CIA support and funding of the mujaheddin. Alfred McCoy, a professor of Southeast Asian history at the University of Wisconsin, says US and Pakistani intelligence officials sanctioned the rebels’ drug trafficking because of their fierce opposition to the Soviets: “If their local allies were involved in narcotics trafficking, it didn’t trouble [the] CIA. They were willing to keep working with people who were heavily involved in narcotics.” For instance, Gulbuddin Hekmatyar, a rebel leader who received about half of all the CIA’s covert weapons, was known to be a major heroin trafficker. Charles Cogan, who directs the CIA’s operation in Afghanistan, later claims he was unaware of the drug trade: “We found out about it later on.” [Atlantic Monthly, 5/1996; Star-Tribune (Minneapolis), 9/30/2001]

CIA covert weapons shipments are sent by the Pakistani army and the ISI to rebel camps in the North West Frontier province near the Afghanistan border. The governor of the province is Lieutenant General Fazle Haq, who author Alfred McCoy calls Pakistani President Muhammad Zia ul-Haq’s “closest confidant and the de facto overlord of the mujaheddin guerrillas.” Haq allows hundreds of heroin refineries to set up in his province. Beginning around 1982, Pakistani army trucks carrying CIA weapons from Karachi often pick up heroin in Haq’s province and return loaded with heroin. They are protected from police search by ISI papers. [McCoy, 2003, pp. 477] By 1982, Haq is listed with Interpol as an international drug trafficker. But Haq also becomes known as a CIA asset. Despite his worsening reputation, visiting US politicians such as CIA Director William Casey and Vice President George H. W. Bush continue to meet with him when they visit Pakistan. Haq then moves his heroin money through the criminal Bank of Credit and Commerce International (BCCI). A highly placed US official will later say that Haq “was our man… everybody knew that Haq was also running the drug trade” and that “BCCI was completely involved.” [Scott, 2007, pp. 73-75] Both European and Pakistani police complain that investigations of heroin trafficking in the province are “aborted at the highest level.” [McCoy, 2003, pp. 477] In 1989, shortly after Benazir Bhutto takes over as the new ruler of Pakistan, Pakistani police arrest Haq and charge him with murder. He is considered a multi-billionaire by this time. But Haq will be gunned down and killed in 1991, apparently before he is tried. [McCoy, 2003, pp. 483] Even President Zia is implied in the drug trade. In 1985, a Norwegian government investigation will lead to the arrest of a Pakistani drug dealer who also is President Zia’s personal finance manager. When arrested, his briefcase contains Zia’s personal banking records. The manager will be sentenced to a long prison term. [McCoy, 2003, pp. 481-482]

Caspar Weinberger. [Source: US Department of Defense]Defense Secretary Caspar Weinberger, a vehement opponent of the US’s arms sales to Iran (see 1981 and December 20, 1983), concludes that if Iraq doesn’t receive military aid, it will lose its war with Iran (see September 1980). Weinberger arranges the secret swap of a Soviet T-72 tank given to the Iraqi military in return for four US howitzers. Some Pentagon intelligence officials covet the Soviet tank for the information they can glean about Soviet weaponry, but, according to two highly placed officials in the Reagan administration, Weinberger sees the deal as an opportunity to begin direct US arms shipments to Iraq. A Pentagon official explains in 1992, “Cap’s view was that once the first arms shipments to Iraq were authorized by the President, the first bite of the forbidden apple had been taken, and other direct covert arms sales to Iraq would follow.” However, the exchange falls through when the Iraqis, fearful that the Soviet Union will terminate its own military aid program, withdraws from the deal. A subsequent Iraqi offer to exchange a Soviet HIND helicopter also falls through when the Pentagon expresses its concerns over the criminal record of the middleman, a Lebanese-born international arms trafficker. However, Reagan and Defense Department officials continue to find ways to secretly supply arms to Iraq (see October 1983). Later, Weinberger will call the Iranian arms deals “insanity. How could you send arms to the Ayatollah when he was sworn to destroy us?” But Weinberger will be much less forthcoming about the US’s arms sales to Iraq, summed up under the sobriquet of “Iraqgate.” Weinberger will later claim that he is not involved in any arms deals with Iraq, and will say, “The little that I know was that it was all handled by the CIA. There might have been a role by some people in the Pentagon. But I didn’t keep a hand in that.” He will refuse to acknowledge the accuracy of Pentagon memos from 1982 and 1983 sent directly to him that outline proposals to arm Iraq. In a 1992 news article, reporters Murray Waas and Craig Unger note that Weinberger will repeatedly lie “without compunction” about his involvement in arms sales to Iraq over the coming years, and observe, “Whenever his credibility is questioned, Weinberger routinely invokes concerns for national security and hides behind a veil of secrecy.” [New Yorker, 11/2/1992]

CIA Director William Casey gets a legal exemption sparing the CIA for a requirement that it report on drug smuggling by CIA officers, agents, or assets. Attorney General William French Smith grants the exemption in a secret memorandum. On March 2, Casey will thank Smith for the exemption, saying it will help protect intelligence sources and methods. [Cooley, 2002, pp. 110-111] There are allegations that in 1981 President Reagan approved a covert program to weaken Soviet soldiers fighting in Afghanistan by addicting them to illegal drugs (see February 1981 and After). A book co-written by two Time magazine reporters will even allege that “a few American intelligence operatives were deeply enmeshed in the drug trade” during the war. [Scott, 2007, pp. 124-125] President Clinton will rescind the exemption in 1995. [Cooley, 2002, pp. 111]

According to investigative journalists Joe and Susan Trento, the arrest of former CIA agent Edwin Wilson, who was involved in business dealings with Libya, has serious consequences for US terrorism policy: “Throughout the 1980s the United States used its intelligence services to divert blame from Iran and Hezbollah onto Libya as part of its entanglement in Iran-Contra with the so-called moderate Iranians with whom the Reagan administration dealt. Ever since international arms dealer Edwin Wilson had been captured and imprisoned in the early 1980s, American intelligence and the White House had labeled Libya a rogue nation, and Libyan dictator Mu’ammar al-Qadhafi a terrorist leader. The intelligence operation went so far that the United States actually recruited a gang of Lebanese criminals to pretend to be a cell of Libyan-backed terrorists conducting violent acts around the world.… These activities, all choreographed by the CIA, were fed to allies such as West Germany as authentic intelligence that implicated Libya for terrorists acts that were either fake or were, in reality, authorized by Iran and carried out by Hezbollah and other surrogate groups.” Benefit to Iran - This policy apparently benefits Iran: “The Reagan administration had given the Iranians plenty of cards to play. The biggest card was the help it had provided making Libya seem like the ultimate source of all terrorist acts.… When the Reagan administration turned Libya into a vicious terrorist nation operating throughout Europe, that gave Iran the perfect opening for retribution.” No action against Hezbollah - In addition, it prevents the US from taking action against Hezbollah, even though Hezbollah is killing Americans: “Because of the Iran-Contra scandal—the selling of weapons to Iran to fund the war in Central America—the Reagan administration ended up protecting Iran’s number one terrorist proxy, Hezbollah, while at the same time Hezbollah’s terrorists were killing and kidnapping hundreds of Americans. While secretly working with the Iranian government, the Reagan administration manipulated intelligence to blame Libya for terrorist attacks for which Hezbollah was responsible. During the 1980s Hezbollah killed and terrorized hundreds of Americans in Beirut, bombing the US Marine barracks, blowing up the CIA station, and killing State Department employees in a bomb attack on the US embassy. Hezbollah did all this with the help of local militia leaders whom the United States relied on as its secret conduits to Iran for its sale of weapons.” [Trento and Trento, 2006, pp. xvi, 64-5]

A “considerable illicit traffic” in US arms sales to the Islamic fundamentalist regime in Iran has developed by this time to assist Iran in the war with Iraq. South Korean and Israeli companies are used as intermediaries. According Alan A. Block, a professor at Pennsylvania State University, many of these sales are known of and approved by the CIA and the Reagan administration. Block points out that these arms sales precede the hostage incidents which, it is later claimed, are the motivation for the arms sales to Iran. [Preece, 1984, pp. 25; Block, 2000]

Neoconservative academic Michael Ledeen is brought into the Defense Department as a consultant on terrorism, via the auspices of Assistant Secretary of Defense Richard Perle, a fellow neoconservative. Ledeen’s supervisor, Noel Koch, is troubled by Ledeen’s frequent visits to his office to read classified documents. When Koch and Ledeen journey to Italy on Pentagon business, Koch learns that Ledeen is considered an “agent of influence” for a foreign government: Israel. After returning from Italy, Ledeen asks Koch to help him obtain two highly classified CIA reports which he says are being held by the FBI. Ledeen gives Koch the reports’ “alpha numeric designators”—numbers as highly classified as the reports themselves. Koch is at a loss to understand how Ledeen obtained such information. Koch tells his executive assistant to stop allowing Ledeen to access the classified materials in his office. In return, Ledeen stops coming to work. [CounterPunch, 2/28/2004] Shortly thereafter, Ledeen will begin “consulting work” for the National Security Council (see Late 1984).

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